I don’t get it. Did any of the leaders of the Reddit retail buying crowd break any laws? If not, why are they being described in a manner that suggests they are criminals? I have never purchased stocks, so genuinely don’t know the answer.
I don’t get it. Did any of the leaders of the Reddit retail buying crowd break any laws? If not, why are they being described in a manner that suggests they are criminals? I have never purchased stocks, so genuinely don’t know the answer.
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Same reason they want to put Trump in prison.
It’s an upside down world.
People who buy stock in a company in order to save it from being destroyed by short sellers are now the villains, and the hedge funds making billions by destroying said companies are now the heroes.
Because they’re beating the hedge funds and titans of Wall St at their own rigged game.
Congress didn’t give a darn about anything that happened last year until something happened at the Capitol.
Wall St doesn’t care unless it upsets their profits. And I bet their puppets in Congress are going to drop the hammer on this guy, while they’re throwing parties for that scumbag clinesmith.
Fill should be flown to Mar A Lago and be given the Medal of Freedom from the Office of the Former President.
No they did not. Recommending or discussing a stock on a social media site, especially if you are not an investment advisor, company officer or incorporated investment fund, is not illegal. If so, you and I talking about a stock to friends a holiday party would be illegal.
I have lived in socialist/communist countries. Government instinctively first protects its organs of power and control. US corporate/leftist media is the same. Populist individuals organizing themselves in a way that shocks the status quo will instinctively be viewed as a threat and will be followed with ridicule, political outrage, and then behind-the-scenes manipulation to throttle them.
No actual laws were broken. The media is trying to make it sound like Redditors are somehow conducting insider trading, but that is because the media doesn't understand how stock trading actually works. Redditors simply realized that AMC and Gamestop were being shorted and they banded together to conduct activist trading. This has been done before, but never to this degree. I find it very amusing to watch!
The problem is that it wasn’t the hedge fund managers who were proposing the “pump and dump”.
I am sure they broke laws. There are so many laws they had to break some. But in principle, they didn’t do anything really wrong or anything that isn’t common practice by wall street insiders.
An argument can be made for securities manipulation type charges, that they organized an effort to manipulate the share price of GameStop. But they did so openly and freely and publicly, some even openly admitted that their motive was to teach these giant short selling funds a lesson... and these giant funds do the exact same thing, they just do it from ivory towers with political connections and in hushed tones most of the time (or, they hire firms to publish negative research reports with dubious credibility to influence the public into selling or avoiding specific stocks).
In the end, like we have seen over and over again the last many years, I would bet money that the SEC will send the FBI to drag a few people out of bed in their pajamas over this. But the optics of doing so may not turn out so well - unless the social platforms and media decide to stifle discussion over it.