Re:Apple resumes iPhone X production due to weak XS sales, r...
by drawkbox on Thursday November 22, 2018 @04:53PM
(#18512803)
Short and distort [1] is big business, sketchy and mostly illegal, but common on the markets biggest shorted stocks, AAPL included.
For short and distort to work, the stock/product has to be one in major demand that can be pushed down with big fish efforts and it will bounce back almost guaranteed. Skimming funds for the hedge funds and big fish from the small/medium longs.
The SEC is starting to crack down on short and distort [2] as it is a market cheat like naked short selling [3] was which exacerbated the Great Recession. SEC cracked down on naked short selling three days after the Great Recession cliff in Sept 2008 [3]. But the levels of shell/misdirection in short and distort is very hard to track down. It is market abuse and if not checked could break the public markets now that most of investing is automated/HFT.
For short and distort to work, the stock/product has to be one in major demand that can be pushed down with big fish efforts and it will bounce back almost guaranteed. Skimming funds for the hedge funds and big fish from the small/medium longs.
The SEC is starting to crack down on short and distort [2] as it is a market cheat like naked short selling [3] was which exacerbated the Great Recession. SEC cracked down on naked short selling three days after the Great Recession cliff in Sept 2008 [3]. But the levels of shell/misdirection in short and distort is very hard to track down. It is market abuse and if not checked could break the public markets now that most of investing is automated/HFT.
[1] https://en.wikipedia.org/wiki/Short_and_distort
[2] https://www.sec.gov/news/press-release/2018-190
[3] https://www.sec.gov/news/press/2008/2008-204.htm