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extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence It's not the SEC's role to prot
by ineedasername 6y ago
extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence
It's not the SEC's role to protect investors from risk or losses, rapid or otherwise, and saying that the recent activity "undermines confidence" is just another way of saying "increases risk", which is not their job. They should ensure confidence by guarding against fraud, but not to protect against losses by institutions that never thought that activist investors would work against their own interests.
This isn't really manipulation that we're seeing: it's people betting against the institutions that themselves bet against companies combined with a fair bit of FOMO.
- threedots 6y agoProtecting investors is literally the first part of the SEC's three part purpose statement. The SEC came into existence because retail investors lost huge amounts of money in the 20's in speculative bubbles. The same thing is going to happen here so the SEC is literally doing what it was set up to do.
- ineedasername 6y agoDon't cherry pick the portion of my statement you want to criticize: I did not say it wasn't the role of the SEC to protect investors. I said it's not their role to protect investors from loss. Clearly it has a role in protecting investors by requiring disclosures that allow informed decision making, policing fraud, etc.