Timeline for Could some of the other funds have done what Reddit did with Gamestop?
Current License: CC BY-SA 4.0
9 events
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| Jan 31, 2021 at 19:15 | comment | added | jamesqf | @Bob Baerker: There's a difference between opinion and "information" you know to be false. The question here, I think, is whether the Reddit thing was spontaneous, or whether it was intentionally created by a small group (or even a single individual) with the express purpose of using the gullible people in the group to create the bubble. | |
| Jan 31, 2021 at 14:35 | comment | added | Bob Baerker |
As written by @gaefan in an answer to another question, You can't prevent people from giving their opinions on stock even if the opinions are completely unqualified. An opinion is not market manipulation. Redditors did just that in an open forum where anyone could heed their opinion or not. That is not illegal nor is it a conspiracy. It was full disclosure. Conspiracy is when big players secretly decide in the back room to corral the stock and manipulate share price.
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| Jan 31, 2021 at 4:45 | comment | added | jamesqf | @Bob Baerker: It's a conspiracy because they aren't making good faith recommendations, they are doing it for the purpose of causing massive losses to whoever happens to be holding short positions. It's basically the same as if that Goldman-Sachs analyst said to buy a stock because the company just discovered how to turn lead into gold - or in the classic stock kiting scheme, had just discovered gold/oil/whatever on one of their properties. | |
| Jan 30, 2021 at 18:53 | comment | added | Bob Baerker |
@jamesqf - Suppose a Goldman Sachs analyst comes out with a stock recommendation and 10,000 account holders receive it. Based on your proposition, how is that not people conspiring with others to drive the share price UP? Redditors were openly discussing their ideas and trades. They put their money where their mouth is and at risk. They did nothing illegal. The hedge funds were awfully stupid if they weren't monitoring Reddit and other stock discussion sites regarding their holdings. Even stupider for taking such large short positions. If you see it otherwise, we agree to disagree.
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| Jan 30, 2021 at 18:22 | comment | added | jamesqf | @Bob Baerker: But in this case we have people conspiring with others to drive the share price UP. | |
| Jan 29, 2021 at 19:27 | comment | added | Brian | While Bob makes a valid point, it's not always easy to differentiate, "I'm offering advice because I like offering good advice," from "I'm sharing a great/awful/interesting trade I just made" and "I'm offering advice because I want to manipulate the market." | |
| Jan 29, 2021 at 14:28 | comment | added | Bob Baerker | Big players in the U.S. markets don't publicize their holdings unless they exceed a position threshold (SEC regulations). But it's not illegal for them to do so. What is illegal is conspiring with others to drive share price down. | |
| Jan 29, 2021 at 12:56 | comment | added | Philipp | Can you perhaps elaborate on what exactly makes this illegal on this question? | |
| Jan 29, 2021 at 10:25 | history | answered | pjc50 | CC BY-SA 4.0 |