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Except it isn't a pump and dump. It is a short squeeze. Hedge fund managers are betting more stocks than the company issued and people are taking advantage of
by xutopia 6y ago
Except it isn't a pump and dump. It is a short squeeze. Hedge fund managers are betting more stocks than the company issued and people are taking advantage of that opportunity.
The closest thing to criminal activity we see here is people betting more than a company's stock. When hedge fund managers see this and buy all the stock to squeeze the shorters it's normal. When it's people like you and me they say it is illegal.
- batmenace 6y agoIt is a pump in the sense that none of the fundamentals of the company have changed between December and now, the main event has been people buying stock with the express purpose of enabling a short squeeze. Legally, there could be an argument for it being market manipulation.
- llampx 6y agoSo nobody should ever buy a stock unless something material, as defined by you, has changed? Not because they think it'll go up in the future?
- koheripbal 6y agoSure they can. But coordinating multiple people to do that is a classic pump and dump, and is explicitly illegal.
- factsaresacred 6y agoWhere's the coordination? People in subreddits are talking about what they are doing and others are choosing to do the same thing. No different from somebody on CNBC providing stock picks.
- llampx 6y agoExactly. CNBC is the biggest market manipulator with a huge mouthpiece. Anytime Cramer mentions a stock in favorable terms it goes up, at least short term. Meanwhile we know that he is friends with hedge funds and at least part of time is probably taking positions before going on TV. We give that a free pass but suddenly a loosely-organized internet forum is a problem.
- koheripbal 6y agoThere are two major differences... 1. If Cramer said "Hey, let's all buy this stock because there is a potential short squeeze.", then that would be illegal because it's attempting to create an artificial market pump through short squeezing. 2. Cramer is LICENSED to give investment advice. A licensed doctor can go on TV and make medical recommendations. Reddit specifically bans subs that try to do that.
- Nimitz14 6y agoIt is clear from your comments you have no clue what you're talking about. Stop spreading misinformation. Read matt levine's twitter: https://twitter.com/matt_levine/status/1354129838806872073 https://twitter.com/matt_levine/status/1354129838806872073 and newsletter if you want to inform yourself.
- disgrunt 6y agoIt is the hedge funds that are inflating the stock price because they have to cover their short positions. This is a short squeeze.
- coldcode 6y agoIt's not a short squeeze any more the shorts sold out at a huge loss. Now it's just hot air holding it up.
- heyoni 6y agoYou’re getting that from news stories and people aren’t buying it. I just looked at TD Ameritrade and it was at 121% of float. Are there newer numbers?
- chollida1 6y agoshort numbers almost always lag atleast a week from what the average person can see.
- duckfang 6y agoAgain, it's a "Rules for thee but not for me" situation. And as it turns out, people are very angry about that. And since violence gets you thrown in jail, the next is financial violence in bankrupting these country-destroying fintech scabs. And look who comes to their rescue, but not for the masses.
- deleted 6y ago[deleted]
- disgrunt 6y agoIncorrect. GME is still heavily shorted by hedge funds.
- dd36 6y agoPump and hold may not be illegal but it means those people that pumped can’t sell for huge gains.