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When scenarios like this happen, who actually loses money? Obviously some person/firm made a lot of money on this story, but there has to be an entity on the o
by joeblau 11y ago
When scenarios like this happen, who actually loses money? Obviously some person/firm made a lot of money on this story, but there has to be an entity on the other side who also lost a lot right?
- Cshelton 11y agoAs the stocks' demand rises, the price goes up. The price going up will cause others to sell, many have a sell limit set so the trade executes automatically. The buyers who bought it going up thinking it will keep going, or that the article was valid, are the losers. The price will fall back down once the article is proven to be fraud and those buyers just lost a good amount of basis points. The ones who held the stock before hand and sold as it reached the peak are the winners.
- celticninja 11y agoThis second group will be the ones the SEC look into first.
- pmarca 11y agoThe people who buy at an artificially and temporarily high price, mainly.