(January 30, 2021 at 2:53 pm)Brian37 Wrote:(January 30, 2021 at 2:49 pm)Rhizomorph13 Wrote: Team Reddit is using collusion to manipulate stock prices. I'm ok with this because having large hedge funds short a stock is a way to manipulate stock prices so same same.
Short selling doesn't hurt companies because the loaned stock comes from a broker or in some cases private traders and stock price doesn't have much effect on the bottom line of a company. Individual employees might suffer due to their company issued options being worthless (That happened to me when I was hired at Intel. Those options aged off without benefitting me at all due to stagnant stock price). There could be an up side for the company if the price goes really low, in that they could re-acquire their stock and then sell it at a higher price to realize gains.
GME, AMC, NOK, and Blackberry are pretty much doomed due to disruptive technologies that have made, GME and AMC in particular, obsolete business models. Shorting these companies makes sense and is not predatory.
BTW I'm holding as much AMC and NOK that Robinhood would let me buy the day after the purchase freeze. I figure if there is a force artificially bolstering the stock I might as well gain from the play. I'm down a few bucks but the whole market dipped yesterday so I'm expecting a rally this Monday.
Not being a SEC lawyer or regulator, jus the word "manipulation" no matter what class one is in, is a word that implies cheating.
Like it or not, manipulation is exactly what the markets are about. Whether you are talking about some broker pumping up a penny stock or hedge funds making huge plays to push stock up or down, it is the way of stonks. If you want, you can learn the patterns and grab some cash. Either you play it safe and play stocks based on merit as I have done since February, or you fly by the seat of your pants and go long on daily spikes or short potential pump and dump stocks. It is a game and you are playing against other people.
Cheating is just some butthurt, virtue signaling word. Whatever; you gotta go get yours!
