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No, the SEC fined them for losing money stupidly. In order to have access to the market like they did, they had to follow certain laws that are enforced by the
by joshAg 13y ago
No, the SEC fined them for losing money stupidly. In order to have access to the market like they did, they had to follow certain laws that are enforced by the SEC. When they were losing all that money they weren't following those laws.
It's like if you cause an accident while you're driving by breaking the law; you get a traffic citation (and the accompanying fine), even if your car is totaled as a result of the accident, because you did something illegal.
- Houshalter 13y agoRight but they didn't do anything except offer trades. The thing about selling shorts they couldn't cover makes sense, but just for "acting stupidly" seems silly.
- comrade_ogilvy 13y agoThese are pros who are paid very well to have a clue. It is not silly if "acting stupidly" is described in writing, such that all parties adequately understand when the hammer is likely to come down. I am sure a lot of traders push the envelope and "drive 71 in a 65 mph zone". But it still not silly to give the guy driving 81 a ticket.
- joshAg 13y agosorry, i wasn't sure how detailed to be, but by 'acting stupidly' I meant unintentionally selling shorts they couldn't cover in a way that made the action illegal.