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Flux
Flux
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I am a small buy-and-hold investor. I recently asked a question about pump and dump scams: Will I be investigated if I regularly profit from pump and dump scams? One interesting comment by user @steve@Steve-oO says (emphasis mine):

SEC: "Look at all these seemingly unconnected pump and dumps, but Flux over there is buying into all of them and regularly jumping out at just the right time. He must know something." I can definitely see how that could lead to an investigation, once the statistical odds of success move past a reasonable threshold. Even if you're proven innocent every time, they're going to be keeping an eye on you, which might lead to you getting pinned for some other violation, even a minor one they don't usually bother pursuing.

Is it actually possible to violate SEC rules within a retail brokerage account? I am struggling to think of things I could do within my brokerage account that could get me pinned for violating SEC rules. Could you give me some examples of violations of SEC rules that can be committed by small investors (accidentally or otherwise)?

I am a small buy-and-hold investor. I recently asked a question about pump and dump scams: Will I be investigated if I regularly profit from pump and dump scams? One interesting comment by user @steve-o says (emphasis mine):

SEC: "Look at all these seemingly unconnected pump and dumps, but Flux over there is buying into all of them and regularly jumping out at just the right time. He must know something." I can definitely see how that could lead to an investigation, once the statistical odds of success move past a reasonable threshold. Even if you're proven innocent every time, they're going to be keeping an eye on you, which might lead to you getting pinned for some other violation, even a minor one they don't usually bother pursuing.

Is it actually possible to violate SEC rules within a retail brokerage account? I am struggling to think of things I could do within my brokerage account that could get me pinned for violating SEC rules. Could you give me some examples of violations of SEC rules that can be committed by small investors (accidentally or otherwise)?

I am a small buy-and-hold investor. I recently asked a question about pump and dump scams: Will I be investigated if I regularly profit from pump and dump scams? One interesting comment by user @Steve-O says (emphasis mine):

SEC: "Look at all these seemingly unconnected pump and dumps, but Flux over there is buying into all of them and regularly jumping out at just the right time. He must know something." I can definitely see how that could lead to an investigation, once the statistical odds of success move past a reasonable threshold. Even if you're proven innocent every time, they're going to be keeping an eye on you, which might lead to you getting pinned for some other violation, even a minor one they don't usually bother pursuing.

Is it actually possible to violate SEC rules within a retail brokerage account? I am struggling to think of things I could do within my brokerage account that could get me pinned for violating SEC rules. Could you give me some examples of violations of SEC rules that can be committed by small investors (accidentally or otherwise)?

Source Link
Flux
Flux
  • 17.2k
  • 10
  • 73
  • 133

Is it possible to violate SEC rules within a retail brokerage account?

I am a small buy-and-hold investor. I recently asked a question about pump and dump scams: Will I be investigated if I regularly profit from pump and dump scams? One interesting comment by user @steve-o says (emphasis mine):

SEC: "Look at all these seemingly unconnected pump and dumps, but Flux over there is buying into all of them and regularly jumping out at just the right time. He must know something." I can definitely see how that could lead to an investigation, once the statistical odds of success move past a reasonable threshold. Even if you're proven innocent every time, they're going to be keeping an eye on you, which might lead to you getting pinned for some other violation, even a minor one they don't usually bother pursuing.

Is it actually possible to violate SEC rules within a retail brokerage account? I am struggling to think of things I could do within my brokerage account that could get me pinned for violating SEC rules. Could you give me some examples of violations of SEC rules that can be committed by small investors (accidentally or otherwise)?