2021-01-31, 15:04 | Link #41 | |
Detective
Join Date: Aug 2010
Age: 36
|
Quote:
A lot of redditers on the other hand didn't decide on getting those shares because they wanted to make a quick buck but to damage the hedgefond, which is two separate things. And in the redditers case it's even rather easy to prove due to them leaving a digital footprint. That aside, should the hedgefond survive, it could still decide to slapsuit them.Although it might not even count as slapsuit per se, should the hedgefond be able to prove that they acted with the mens rea of damaging them. - Really depends on the country. - And yes the mens rea can, again be proven through the reddit posts. As for the issue of slapsuits, see And yeah, Murrey could just sue again, even John Oliver admits that.
__________________
Last edited by AC-Phoenix; 2021-01-31 at 15:17. |
|
2021-01-31, 15:32 | Link #42 | |
I disagree with you all.
Join Date: Dec 2005
|
Quote:
And there's another aspect: who is it that wants retail traders using their hard earned money on stock trading instead of, say, the real economy? Hedge funds, who own platforms like Robin Hood, or buy data from them. |
|
2021-01-31, 15:39 | Link #43 | |
Part-time misanthrope
Join Date: Mar 2007
|
Quote:
Something you don't have is not the same as something that does not exist. You shouldn't be able to trade 140% of something because these 40% do not exist. Last edited by Eisdrache; 2021-01-31 at 18:28. |
|
2021-01-31, 15:54 | Link #44 | ||
I disagree with you all.
Join Date: Dec 2005
|
Quote:
Quote:
Let's say Alice has a GME stock. Bob wants to short-sell, so he borrows Alice's stock and sells it to Carol. Now Carol has a GME stock, and as it happens, Daniel wants to short-sell. So he borrows Carol's stock and sells it to Elvira, Mistress of the Dark (I couldn't think of another name in E). |
||
2021-01-31, 17:52 | Link #46 | |
Detective
Join Date: Aug 2010
Age: 36
|
Quote:
Also, unlike EU citizens (and I'm not even sure it's all of them), US citizens are mostly not protected against slapsuits, which don't require anything being illegal in the first place as their goal is damaging, or at least teaching the other party a lesson, using a court of law as an instrument. Unlike what you might be used to, US citizens don't automatically get their lawyer's fees back from the opposing party, they have to pay them themselves, regardless of the result.
__________________
|
|
2021-01-31, 18:10 | Link #47 | ||
Senior Member
Join Date: May 2014
|
Quote:
The posters' responses were they were going to sell stocks, but they are going to keep one particular stock. When brokers limit the purchasing of the stock, and only allow selling the stock, this mechanism wipe out the stock demand from the market, and drove down the price of the stock. Quote:
|
||
2021-01-31, 18:20 | Link #48 | |
Senior Member
Join Date: May 2014
|
Quote:
Investment Tuition 101: Bluffing through media outlets The first investment lesson is to test investors' IQ and EQ, and teach investors to understand "news". https://www.youtube.com/watch?v=8HXziyCvPNs Last edited by scififan; 2021-02-01 at 00:26. |
|
2021-01-31, 22:44 | Link #49 | |
Senior Member
Join Date: Feb 2014
|
Quote:
|
|
2021-02-01, 13:41 | Link #50 | |
Detective
Join Date: Aug 2010
Age: 36
|
Quote:
Nevertheless, slapsuits don't require a chance of success or any illegality in the first place. And if I were a lawyer working for the hedgefond, and some pissed CEO would ask me how we could exact revenge, I'd tell them that slapsuiting them would be an option. (Assuming they'll be able to afford it and waste the money.) E:Assuming this wouldn't violate the bar's ethical standards, but that's a thing for US lawyers to figure out, not for someone who quit lawschool, and moreover, did so in another country.
__________________
Last edited by AC-Phoenix; 2021-02-01 at 14:37. |
|
2021-02-03, 08:19 | Link #51 | |
今宵の虎徹は血に飢えている
Join Date: Jan 2009
|
Quote:
And it's not a crime in my home country.....How do you even prove intent if you say "I wanted to profit off the bubble like everyone else?" If my home government did pursue a suit on a US private entity's behalf against a group of citizens and residents who bought in, it would be big news and they'll never hear the end of it. Plus it'll damage the image of neutrality they cultivate so that entities of all countries can freely trade there At any rate, by that logic, the same investors talking about shorting vaccine makers at the start of the pandemic including companies who were the sole vaccine discovery player in certain countries ought to be jailed for attempted murder Also good luck correlating Redditor anonymity with actual IRL identity what with so many of them posting over tor or VPN
__________________
Last edited by Cosmic Eagle; 2021-02-03 at 08:37. |
|
2021-02-03, 17:28 | Link #53 | |
I disagree with you all.
Join Date: Dec 2005
|
Quote:
Second, because even if they win, what do they win? Intimidated retail investors take their stakes back and keep it under mattresses? The Wall Street guys don't want that. More regulation? The Wall Street guys really don't want that. |
|
2021-02-04, 03:12 | Link #54 |
Senior Member
Join Date: May 2014
|
Can you interpret the figure? Based on unusual high volume from the premarket, someone from Reddit claimed that the specific Captial is gambling, like Midari Ikishima(you know, that person whose idea of pleasure is increasing her own risk). The claimed motive is "Selling stocks to drive down price and buy back stocks later?" The use of technical analysis skill may be handy. At least, some investors claim that technical analysis can identify unusual pattern. Could it be other factors that influence the figure at the day's opening?
|
2021-02-04, 08:16 | Link #55 | |
Detective
Join Date: Aug 2010
Age: 36
|
Quote:
__________________
|
|
2021-02-04, 10:00 | Link #56 |
Shitpost Gremlin
Join Date: Jun 2006
Location: Formerly Iwakawa base and Chaldea. Now Teyvat, the Astral Express & the Outpost
Age: 44
|
Please show us in the international law where a corpo can sue a private citizen from a foreign country. If a hedge fund want to sue Hans Gruber on the suspicious he have been holding a GME stock for the sake of manipulating the market, I am sure Aunt Merkel would have a few stern words for Joe.
__________________
|
2021-02-04, 13:20 | Link #57 | |
I disagree with you all.
Join Date: Dec 2005
|
If anyone still cares, here's a video that (at the end) explains why RH may have had legitimate reasons to stop the GME trades. It's also pretty good at explaining the context of the whole thing... if you speak French.
https://www.youtube.com/watch?v=EGs5kYYw6d8 If you don't, the thing with RH is this: between the time an order is placed on the RH platform, and the time money and stock change hands, days can pass. In those days, stuff can happen that makes one of the parties of the trade unable to deliver on their end. (Like a bankruptcy, for example.) If that happens, RH is on the hook for what was ordered on it. Because of that, they must, by law, put money on a margin account. How much money depends on the volume of the trade and the volatility. Since the GME stock was very volatile, and being traded in large volumes, the margin requirement exploded. RH may not have had the money to fill that margin account in those conditions. No, it's to intimidate, and like I said, I don't think they want that either. And they have a lot to lose if they try. Quote:
Last edited by Anh_Minh; 2021-02-05 at 01:24. |
|
2021-02-04, 20:40 | Link #58 | |
Senior Member
Join Date: Jan 2006
|
Quote:
I guess the truth may be just that the companies were afraid to admit to what is basically a liquidity issue, even though to me that's totally understandable.
__________________
|
|
2021-02-05, 05:09 | Link #59 | |
Detective
Join Date: Aug 2010
Age: 36
|
My personal opinion on whether shortening a Stock is illegal btw:
No. When you are allowed to bet that a stock goes up (i.E. normal stock trading), you should as well be allowed to bet on a stock going down. What needs to be examined imho is the 140% thing. The real question is: Did any of the reddiders who started this short the hedgefond at the same time? Because that would sound very illegal . As for whether betting on GameStop failing is justified: Given, the pandemic, yes. Gamestop isn't even allowed to open in my country at the moment, and the same goes for Germany. A lot of people, myself included, also haven't bought physical copies of games even before that, as they tend to bulk up (book)shelves. So, let's be honest here: As sad as it is: How much will Gamestop be able to compete against Steam, and others in the future? Their best bet would be selling Steamkeys and ask steam for a brokerage. Also more detailed analysis from Legal Eagle: https://www.youtube.com/watch?v=9vd3iZDN_OI Quote:
It's something most, or at least some, of us Europeans are protected against, since the losing party of a lawsuit has to pay the winning party's lawyer fees.
__________________
|
|
2021-02-05, 05:26 | Link #60 |
Senior Member
Join Date: Sep 2008
Age: 38
|
It's not even just about physical vs digital, though that's done a number on them.
They offer literally zero over Best Buy, Target, Amazon, or Walmart. In fact, Target you can get it cheaper due to RedCard or their usual pre-order bonuses for like a $5 gift card or whatever when you pick up the game. |
|
|