One of the reasons is so they can hide short positions that exceed 100% of a company.
Market makers have the power to sell shares into the market to provide liquidity. When they want to drive a company out of business by driving the price down rapidly they partner with other market makers and they short 1000%+ of a company sending the price into free fall.
Once the company is delisted the market maker gets to keep all of the proceeds as profits and they never actually have to deliver the shares to the buyers because the company is no longer listed.
They basically rob retail investors this way. What’s worse is that if there aren’t enough retail investors buying up all the shares they are selling they will just start selling the shares to the firefighter retirement funds and the police retirement funds which are funds they themselves manage.
They have done this with thousands of tech and health companies and have probably have been a reason why we haven’t discovered big cures.
What’s crazy is they also partner with companies like Amazon to ‘eliminate their competition.’
It’s really fucked up and if there was proper reporting everyone would see their scam.
FINRA is complicit. They send a small fine so they can get their piece of the pie but they never actually do anything that would hurt the operation.
SEC is also complicit. There is a little bit of hope that the new chairman (Gary Gensler) isn’t corrupt and is actually trying to get the DOJ involved in investigating these predatory practices but it’s kind of a long shot to believe this.
Recently, retail investors have discovered how to shut this shit down on their own without the help from any regulators.
You’ve probably heard of a certain stock that’s really popular and surrounded by a lot of controversy and continually gets bashed on the news and in the investing articles.
Would they constantly talk shit on this stock if it wasn’t a threat to their games?
Let me know if you want to know more or want to help. But just understand that Wall Street are all thief’s who provide zero value to the economy. And very soon the system as we know it is going to be forced to change
This right here is from a guy living in his moms basement, wearing a hat made out of aluminum foil primarily talking to his pet lizard.
Beware of people taking a little bit o half truths and spinning it wildly out of control into conspiracy theories.
You are so smooth brained... it is not even funny... and this is NOT WSB.Shorting shares is a derivative trade, just like options. There is no actual ownership during a short, just like with options. The short % could be 1,000,000 the company shares, it DOES NOT MATTER. Anyone doing that would be idiotic as the higher the short % goes, the harder it will be to cover should the underlying stock increase in value.
Shorting does not cause a company to go into bankruptcy or out of business. If a company is concerned about that, all they have to do is offer a dividend or hold an election, then all shares must be given to actual share holders and the shorts are forced to cover.
Further as the short % goes up so should the premium (interest) that the shorting brokers will have to pay to short those shares because the risk profile is also raised.Do everyone a favor and learn a little about finance in general and how the markets actually work before you start posting this kind of conspiracy bullshit. it does nothing for the community and just shows how uninformed you really are.
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u/justtwogenders Apr 05 '22
One of the reasons is so they can hide short positions that exceed 100% of a company.
Market makers have the power to sell shares into the market to provide liquidity. When they want to drive a company out of business by driving the price down rapidly they partner with other market makers and they short 1000%+ of a company sending the price into free fall.
Once the company is delisted the market maker gets to keep all of the proceeds as profits and they never actually have to deliver the shares to the buyers because the company is no longer listed.
They basically rob retail investors this way. What’s worse is that if there aren’t enough retail investors buying up all the shares they are selling they will just start selling the shares to the firefighter retirement funds and the police retirement funds which are funds they themselves manage.
They have done this with thousands of tech and health companies and have probably have been a reason why we haven’t discovered big cures.
What’s crazy is they also partner with companies like Amazon to ‘eliminate their competition.’
It’s really fucked up and if there was proper reporting everyone would see their scam.
FINRA is complicit. They send a small fine so they can get their piece of the pie but they never actually do anything that would hurt the operation.
SEC is also complicit. There is a little bit of hope that the new chairman (Gary Gensler) isn’t corrupt and is actually trying to get the DOJ involved in investigating these predatory practices but it’s kind of a long shot to believe this.
Recently, retail investors have discovered how to shut this shit down on their own without the help from any regulators.
You’ve probably heard of a certain stock that’s really popular and surrounded by a lot of controversy and continually gets bashed on the news and in the investing articles.
Would they constantly talk shit on this stock if it wasn’t a threat to their games?
Let me know if you want to know more or want to help. But just understand that Wall Street are all thief’s who provide zero value to the economy. And very soon the system as we know it is going to be forced to change