3 ms·

Good to know we can count on the SEC to bust small-time dentists who make $70K on options trades off insider info, and also rubber stamp financial maneuvers whi

Good to know we can count on the SEC to bust small-time dentists who make $70K on options trades off insider info, and also rubber stamp financial maneuvers which are guaranteed to harm numerous retail investors like this. If the ruling principle of our financial markets is going to be "caveat emptor" why don't we just disband those portions of the SEC which are supposed to vet securities offerings?

mediaman 6y ago
The filing clearly states investors will lose their money. If you're intent on losing money, there are many worse ways to do it, and nobody can claim this registration is deceitful.
- AndrewBissell 6y ago
  > The filing clearly states investors will lose their money. So if I want to sell stock with a registration statement which says, "this is a Ponzi scheme and investors who buy in too late will lose all their money," that should be permissible?
  - WJW 6y ago
    Ponzi schemes are forbidden by law, so no that would not be permissible. It's completely legal to file for an IPO for a company when you have no business plan yet though. As long as you are open about what you intend to do and it's not illegal then the SEC won't stand in your way. See https://www.investor.gov/introduction-investing/investing-basics/glossary/blank-check-company https://www.investor.gov/introduction-investing/investing-ba... for example.
  - occamrazor 6y ago
    I am a bit conflicted, but overall, if the description is fair and the disclaimer is clear, I would allow it. Lotteries ang gambling are legal after all.
  - nokcha 6y ago
    >So if I want to sell stock with a registration statement which says, "this is a Ponzi scheme and investors who buy in too late will lose all their money," that should be permissible? If you make sure that investors are actually aware (e.g., you don't try to bury it in fine print), then I don't see why not, as long it complies with the gambling laws of the relevant jurisdiction.
  - WrtCdEvrydy 6y ago
    Try it, see what happens. Theoretically, Ponzi schemes are only illegal because you generally have to commit fraud on financial statements.

mediaman 6y ago

The filing clearly states investors will lose their money. If you're intent on losing money, there are many worse ways to do it, and nobody can claim this registration is deceitful.

AndrewBissell 6y ago
> The filing clearly states investors will lose their money. So if I want to sell stock with a registration statement which says, "this is a Ponzi scheme and investors who buy in too late will lose all their money," that should be permissible?
- WJW 6y ago
  Ponzi schemes are forbidden by law, so no that would not be permissible. It's completely legal to file for an IPO for a company when you have no business plan yet though. As long as you are open about what you intend to do and it's not illegal then the SEC won't stand in your way. See https://www.investor.gov/introduction-investing/investing-basics/glossary/blank-check-company https://www.investor.gov/introduction-investing/investing-ba... for example.
- occamrazor 6y ago
  I am a bit conflicted, but overall, if the description is fair and the disclaimer is clear, I would allow it. Lotteries ang gambling are legal after all.
- nokcha 6y ago
  >So if I want to sell stock with a registration statement which says, "this is a Ponzi scheme and investors who buy in too late will lose all their money," that should be permissible? If you make sure that investors are actually aware (e.g., you don't try to bury it in fine print), then I don't see why not, as long it complies with the gambling laws of the relevant jurisdiction.
- WrtCdEvrydy 6y ago
  Try it, see what happens. Theoretically, Ponzi schemes are only illegal because you generally have to commit fraud on financial statements.