Re:Class Action Lawsuit Filed Against Robinhood
by drail99 on Thursday January 28, 2021 @06:15PM
(#25950906)
The VW wasn't a planned squeeze. It just happened because Porsche was actively taking a stake in the company. Porsche didn't buy the stock with the intention of selling it to make a profit, they literally tried to buy the company to trigger a asset transfer clause.
It's also worth nothing that this happened in Germany so not subject to SEC regulations AND very importantly, Porsche actually ended up on the losing end of the deal and getting screwed. They tried to get a Bail out from the Saudi's but German govt. Wouldn't allow it.
In the US, buying stocks with the intention of creating a short squeeze and then reselling the stock is expressively illegal by SEC regulations, it's why you see the phrase "WE like the stock" so much.
It's also worth nothing that this happened in Germany so not subject to SEC regulations AND very importantly, Porsche actually ended up on the losing end of the deal and getting screwed. They tried to get a Bail out from the Saudi's but German govt. Wouldn't allow it.
In the US, buying stocks with the intention of creating a short squeeze and then reselling the stock is expressively illegal by SEC regulations, it's why you see the phrase "WE like the stock" so much.