After so much pumping lately, why not create a topic about the Pump stocks?
Disclaimer: Pump/Dump is an illegal activity in US and in other countries. The US financial regulator, SEC, already announced investigations in GameStop stock. And in US, they take that very seriously.
I guess pump and dump is not the exact situation here where people try to short squeeze.
Also I wonder which part is illegal? Of course false claims etc can be illegal, but aren’t people buying into these stock due to high percentage of shorts?
Having circuit breakers is okay as well as investigating any manipulation, but preventing people from buying heavily shorted stocks does not make sense for me. If there is no leverage in place, why would brokers interfere with the decision of retail investors?
Disclaimer: I haven’t bought any of these stocks while they are pumped. But I happened to sold NOK at 9.79
from what I can tell it’s legal for a group of people to get together and agree to buy a stock, what’s not legal is any deception saying a reason why to buy etc that is wrong.
regarding brokers, from what I believe they can do whatever they like, if they want to suspend a stock that’s up to them for whatever reason and it’s in the agreement terms probably so that’s it.
true, some people will lose out on this, people are actually lucky that T212 didn’t allow them to buy and lose out. (or you could argue if they could buy then others would buy and the price would have gone up, but we will never know)
Sure, probably terms and conditions allow more than that. But it is really weird to see all large brokers collaboratively halt buy side of trades for some stocks. They actively affected the price movement of these stocks and can short these stocks as well while preventing people from buying them.
yeah it’s weird and very unusual situation, this whole GME thing is just nuts. I guess it sets a future precedent that brokers might do this again and the risk of getting into these pumps and squeezes is even more risky knowing your broker might just pull the plug.
I would also say, I think that crypto exchanges will bring in more stock tracking crypto coins soon and this will become more mainstream and maybe is where some trading might go to get around these kind of things, (buy the crypto coin for GME instead of GME itself)
This is squeezing a heavily shorted stock, it’s the safest bet if it’s allowed to continue. 130% of the float has been shorted all that needs to happen is for the price to stay high enough for fridays call options to be ITM when this happens and the Shorts expire they will need to return 130% of the stocks that they don’t have any more…
Not all are short squeezes.
There aren’t any safest bets, there is always risk. For example, the shorters could short even more. Wins who have more firing power, the longers or the shorters.
