Re:The Irony in the GameStop Story
by maxerickson on Friday January 29, 2021 @09:57AM
(#25957832)
What's the standard for manipulation?
If retail investors publicly coordinate buys is that manipulation?
What if they pool their assets and appoint a controller? ("make their own managed fund").
the standard (as a regulated person) is intention - you don't even have to succeed at moving the price in order to be guilty of market abuse/manipulation
What is illegal or not in finance feels more or less arbitrary.
Re:The Irony in the GameStop Story
by flatfilefan on Friday January 29, 2021 @09:49AM
(#25957763)
I’m sorry if I’ve just missed that in your linked text but doesn’t sec text concern only short selling and not actual buying?
It’s also illegal, which seems to have been left out of all the conversations.
“ The rush by short sellers to cover produces additional upward pressure on the price of the stock, which then can cause an even greater squeeze. Although some short squeezes may occur naturally in the market, a scheme to manipulate the price or availability of stock in order to cause a short squeeze is illegal.”
https://www.sec.gov/investor/pubs/regsho.htm