Replies to post #128993 on AMC Entertainment Holdings Inc (AMC)

[joseytheoutlawwales]

It’s all relative to current pps of .72 cents

[eastunder]

That is why when you see an odd number on a chart, and by odd I mean unreasonably high (AMC) or unreasonable low (AAPL) - it's always good to check and see whether a stock has done a reverse split or forward split in the past and whether a chart has been adjusted to show that.

There are sites for that such as this one if you ever want to check that in the future...

http://www.splithistory.com/?symbol=amc

But how can a chart get adjustment in the past? thats like rewriting history with false narrative

Stock charts gives a good reason why charts are adjusted... probably one of the best explanations I have read.

At StockCharts, we adjust our historical price data to remove gaps caused by stock splits, dividends and distributions. That may cause our charts to look different from other services that do not perform the same adjustments.

For example, if a stock splits 2-for-1, the price is suddenly half of what it used to be, creating a large gap down on the chart. If you were unaware of the split, the chart would give you the impression that something bearish happened to the underlying company. In addition, most of the technical indicators on that chart would give sell signals because of the big drop in prices. Even though such a split is generally considered a neutral event, an unadjusted chart would contain lots of bearish signals.

In order to prevent these kinds of misleading signals from appearing on our charts, we adjust all the historical data prior to the event. In the case of a 2-for-1 split, we divide all of the historical prices for the stock by 2, then multiply all of the historical volume by 2 so that the bars prior to the split match up smoothly with the bars that appear after the split.

In addition to performing adjustments that remove large gaps caused by splits, we also adjust our historical data to remove smaller gaps caused by dividends and distributions. By making these additional adjustments, we ensure that all price movements on our charts are caused by pure market forces - that is, the forces that Technical Analysis attempts to identify.