5 ms·
Not when moving the price is the goal. If you trade specifically to create an unfair impression of the supply and demand of a stock that's market manipulation.
by thr0waway2 6y ago
Not when moving the price is the goal. If you trade specifically to create an unfair impression of the supply and demand of a stock that's market manipulation.
Thing is no one is going to prosecute a randomer on the internet for throwing $5k at an option especially when there's no proof that it was done in bad faith.
- ballenf 6y agoI just don't get how WSB is engaging in market manipulation more than the 136% shorts were.
- argonaut 6y agoShorting a stock because you genuinely believe the company is crap is not market manipulation. To be clear, market manipulation is very vague and very broad, and from what I've read the SEC is only going after you if there was fraud or lying involved. Most of WSB's activity is not illegal market manipulation.
- thr0waway2 6y agoTrading (or posting) to cause impact and affect other positions you have is manipulation too. But it's not really provable in the case of WSB so they're safe. P.S. not legal advice
- fractionalhare 6y agoIt is not market manipulation for short interest to rise above 100%. It doesn't require anything nefarious. No collusion between institutional investors required either.
- ballenf 6y agoI agree that neither group manipulated the market. I referenced the % just as a convenient label for that group of market participants.
- baybal2 6y ago> If you trade specifically to create an unfair impression What is a "fair impression," it's all up to owners of the paper to decide on selling price, nobody else can. > Not when moving the price is the goal. Market transactions don't move the price, its people doing them do.