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Statement of SEC Regarding Recent Market Volatility

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Re: Statement of SEC Regarding Recent Market Volatility

#131

Post by FartyMcFarter »

dkrich wrote: post #75

There’s a long history of similar occurrences that follow along a common line: whatever appears to support individual investors will be the path taken by politicians and regulatory bodies. Right now it appears that the public wants to be able to trade on their terms because there is this narrative that the little guy is finally sticking it to the big bad hedge funds. In reality there is probably very little truth to…

> there is this narrative that the little guy is finally sticking it to the big bad hedge funds. In reality there is probably very little truth to this.

Which part has little truth to it?

The big hedge funds are apparently losing money (billions!) on Gamestop, unless that's being mis-reported. Some of the "little guys" (reddit people) definitely were a part of the reason for that.

Re: Statement of SEC Regarding Recent Market Volatility

#132

Post by bo1024 »

TeMPOraL wrote: post #5
pferde wrote: post #2

In summary, just a vague "we are watching" statement.

My attention was caught by this paragraph: > In addition, we will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws. Market participants should be careful to avoid such activity. Likewise, issuers must ensure compliance with the federal securities laws for any contemplated offers or sales of their own securities. I'm n…

I can read it the opposite way. "We will stop retail from trading for their own good because we think they are being manipulated."

Re: Statement of SEC Regarding Recent Market Volatility

#133

Post by Leader2light »

dleslie wrote: post #116
dkrich wrote: post #75

There’s a long history of similar occurrences that follow along a common line: whatever appears to support individual investors will be the path taken by politicians and regulatory bodies. Right now it appears that the public wants to be able to trade on their terms because there is this narrative that the little guy is finally sticking it to the big bad hedge funds. In reality there is probably very little truth to…

The FOMO is palpable. There's a hurried rush of small investors hoping to turn their meagre savings into a big win, backed by the anxiety that if they don't try then they'll forever regret missing their one and only chance at a comfortable life. This sort of event would be less likely if America's wealth disparity weren't so grotesquely skewed.

It is so sad. The collapse will come within the next decade. Total financial collapse.

Re: Statement of SEC Regarding Recent Market Volatility

#134

Post by llampx »

dkrich wrote: post #99
rich_sasha wrote: post #20

Earlier quoted context omitted.

From a distance, this is all a storm in a teacup. It's a small handful of stocks, and every single one in S&P500 is waaaay bigger, in terms of trading volumes and market cap. Anything can happen, but in finance terms, this is tiny so far.

I’d be very careful about making this assumption. There is always bleed over in unexpected ways. When these stocks spiked on Wednesday the market as a whole came down hard. Perception is extremely important and if people start to fear that brokerages could be insolvent or just lose faith in the valuations of stocks as a whole it could definitely effect the entire market.

I follow the markets, and the market does a hard mini-crash about once every two weeks. You don't notice it as a buy-and-hold investor, but it raises the hackles of many short-term traders.

Re: Statement of SEC Regarding Recent Market Volatility

#135

Post by SpicyLemonZest »

newsclues wrote: post #103
SpicyLemonZest wrote: post #31

Earlier quoted context omitted.

It’s aimed at both, presumably. It’s not like hedge funds have never gotten in trouble for abusive trading practices.

The problem is that when hedge funds get in trouble they do not go to jail, are not prohibited from doing business and the penalties (fines) are ineffectively weak. Given the track record of holding the powerful accountable is terrible, I don’t think this is directed at hedge funds but is a warning to the little people.

It’s common for hedge funds (and more importantly, the people who run them) to be prohibited from doing business. “Barred from the securities industry” is the term typically used if you’re looking for examples.

Re: Statement of SEC Regarding Recent Market Volatility

#136

Post by FartyMcFarter »

ericmay wrote: post #101
acover wrote: post #85

Earlier quoted context omitted.

If wallstreetbets was a hedge fund and they bought all of GME to cause a short squeeze then that is market manipulation - this has been settled [0]. [0] - https://www.sec.gov/news/press-release/2013-159 Edit: litigated to settled

If WSB was a hedge fund they just have to buy some of GME - not all or even too much. Other hedge funds could buy some too. Just have a "dinner conversation" about it. Just like you and a few hedge funds can get together and collectively short GameStop and other companies... as they are doing now. There's no rule that I know of that says only one entity can make a specific investment. -edit- Don't forget that hedge f…

> Just have a "dinner conversation" about it.

This would be illegal I think.

Re: Statement of SEC Regarding Recent Market Volatility

#137

Post by youkoulele »

gjsman-1000 wrote: post #3

"The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities. In addition, we will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws. Market participants should be careful to avoid such activity." This shoul…

Why would the SEC punish Robinhood for not having enough collateral to trade very volatile stocks.

Re: Statement of SEC Regarding Recent Market Volatility

#138

Post by MattGaiser »

FartyMcFarter wrote: post #131
dkrich wrote: post #75

There’s a long history of similar occurrences that follow along a common line: whatever appears to support individual investors will be the path taken by politicians and regulatory bodies. Right now it appears that the public wants to be able to trade on their terms because there is this narrative that the little guy is finally sticking it to the big bad hedge funds. In reality there is probably very little truth to…

> there is this narrative that the little guy is finally sticking it to the big bad hedge funds. In reality there is probably very little truth to this. Which part has little truth to it? The big hedge funds are apparently losing money (billions!) on Gamestop, unless that's being mis-reported. Some of the "little guys" (reddit people) definitely were a part of the reason for that.

Certain hedge funds are losing money. I am sure some others are having a great time with this.

Re: Statement of SEC Regarding Recent Market Volatility

#139

Post by adriancr »

A few rants that i tried answering to someone before him removing post.

Free speech is allowed.

Prosecuting people for free speech is impossible.

A bunch of imbeciles posting on forums is similar to a bunch of imbeciles on CNBC arguing that price is too high.

A hedge fund with 12 billion dollars shorting 140% of a stock and then using media to drive price to 0 is illegal. Also more then idiotic since they caused the whole problem to begin with. Without their greed there would be no short squeez, gamestop would have been at 50-60 or whatever fair market value instead of suppressed 5-6 dollars a long time ago.

The only illegal thing initially was hedge funds.

They then got punished and went to do other illegal things like wash sales, stopping people from buying, collusion with supposedly neutral market makers.

Whatever happens I hope the people above go broke first, investors that got conned go after their personal belongings for breaking fiduciary and afterwards spend a long time in jail.

Re: Statement of SEC Regarding Recent Market Volatility

#140

Post by bradstewart »

nsonha wrote: post #87
balozi wrote: post #46

Earlier quoted context omitted.

Well... they will start by redefining "market manipulation" to encompass all activity they now consider disruptive (also suitably redefined). This is America today.

Your point? Can disruptive ever be good? Other than in SV jargons?

Good for who? Why does an event have to be good or bad?
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