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> the fact that the SEC has neglected to investigate insider trading for years now. Obviously false: https://secsearch.sec.gov/search/docs?utf8=%E2%9C%93&affil
by koheripbal 6y ago
> the fact that the SEC has neglected to investigate insider trading for years now.
Obviously false: https://secsearch.sec.gov/search/docs?utf8=%E2%9C%93&affiliate=secsearch&dc=654&query=insider+trading&commit=Search https://secsearch.sec.gov/search/docs?utf8=%E2%9C%93&affilia...
> 4chan and several other sites...
Scale dictates enforcement priorities, obviously. Like a lot of people, they don't deal with issues until they are large and impact the market. They are ABSOLUTELY going to intervene here. First with some immediate action, and later they'll craft a new rule to guide social media on stock advice being not allowed on their platforms (IMO).
> why the f** is shorting legal
Short selling rewards investors who believe that certain stocks are overvalued or that the company is covering up fraud. They helped bring Lehman Brothers down, as well as Enron, Wirecard, etc... In those instances, the shorts were instrumental in reverting stocks down to correct (sometimes zero) prices. Without them, bubbles would rise higher and poop much bigger. That sort of volatility destroys liquidity and confidence in the market.
> Short insurance should be mandatory for short trading.
There are naked short limits already, but yeah, this issue with GameStop should have those rules re-evaluated, because they obviously didn't work in this case.
- mrec 6y ago> bubbles would rise higher and poop much bigger Please don't fix this, it's perfect.
- jcfrei 6y ago> They are ABSOLUTELY going to intervene here. I wouldn't be so certain about this at all. Matt Levine has a good take on it: https://www.bloomberg.com/news/newsletters/2021-01-26/will-wallstreetbets-face-sec-scrutiny-after-gamestop-rally-kke9fpzq https://www.bloomberg.com/news/newsletters/2021-01-26/will-w...
- tony101 6y ago> "First with some immediate action, and later they'll craft a new rule to guide social media on stock advice being not allowed on their platforms (IMO)." What about Section 230?