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Shorting is much more legally risky. SEC basically doesn’t view shorts as investors, and that has interesting outcome. The don’t care if you illegally cause st
by justapassenger 6y ago
Shorting is much more legally risky. SEC basically doesn’t view shorts as investors, and that has interesting outcome.
The don’t care if you illegally cause stock to go up, and you profit from it, as other investors also profit.
But causing stock to go down opens you to much higher liability, for hurting investors. And if you profit of it via short, you’re in much more legal risk.
- gruez 6y ago>The don’t care if you illegally cause stock to go up, and you profit from it, as other investors also profit. They clearly do, as we've seen with musk's "funding secured" tweet.
- justapassenger 6y agoDo they? He got financial slap on his wrist, didn’t have to admit to any wrong doing, kept absolute power in the company, ignored any corrective actions of the settlement, and continues to pump stock on weekly basis, to a place that made him one of the richest people in the world. And in the free time he’s pumping other meme investments, just for fun. SEC vs Musk is perfect example of how powerless/not interested in pumping stock schemes regulators are. Until stock start to go down, then they get more power.
- brigade 6y agoOn the other hand, did Musk ever get in trouble for his “stock price too high” tweet?
- dan-robertson 6y agoCEOs say all the time that the stock is too low (musk was weird for saying high). They can express an opinion. They can’t make a false material statement of fact