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> Why can't you trust your dad about his stock purchases? It's not the stock purchases in themselves. It's the degree to which certain stocks are hyped, largel
by gmaster1440 6y ago
> Why can't you trust your dad about his stock purchases?
It's not the stock purchases in themselves. It's the degree to which certain stocks are hyped, largely by misinformation and traditional bubble mechanics, that's particularly insidious here. There's a reason why pump-and-dump schemes are traditionally regulated by securities laws.
- cactus2093 6y agoFrom what I understand, pump-and-dumps are illegal if you make untrue promises about future behavior or otherwise are shown to deceive or lie about it. Or if you are coordinating to have a certain group all sell at an exact same time to leave others holding the bag. I suppose it's a fine line, but to me this seems much more loosely coordinated. I don't think there's been any particular time to sell that has been agreed on, and all the communication is out in a public forum. And the demand for the stock is all based around public knowledge that it was shorted 140% of its market cap. It seems like the difference between insider trading vs if information leaks to the public about a company's plans in which case it's completely legal to trade based on.