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If you mean shorting Masimo purely to drive down the price, that's market manipulation and is definitely illegal. E.g. https://www.investor.gov/introduction-in
by xoranth 3y ago
If you mean shorting Masimo purely to drive down the price, that's market manipulation and is definitely illegal. E.g.
https://www.investor.gov/introduction-investing/investing-basics/glossary/market-manipulation https://www.investor.gov/introduction-investing/investing-ba...
- ceejayoz 3y agoYour link doesn't support that assertion. https://en.wikipedia.org/wiki/Hindenburg_Research https://en.wikipedia.org/wiki/Hindenburg_Research would be out of business if that business model was illegal. You can short all you like; you can't be deceptive/fraudulent about it.
- xoranth 3y agoHindenburg doesn't short in order to drive down the price. Hindenburg compiles and releases information they believe to be truthful about a company, which they shorted beforehand in order to profit from the information. What I am talking about is sending orders only to cause a certain reaction (e.g. by convincing momentum traders that there is momentum in a certain direction).
- ceejayoz 3y agoYou can short for the sake of shorting. You can’t fake volume with wash trading. Very different things.