It does kind of raise questions about stocks in the current era. If it isn't an organised intentional scheme to raise stock prices and then sell everything, yet there is a gathering of people who purely by talking about certain stocks on a public platform can make the value skyrocket, is it somehow illegal?
It used to be that the people doing this sort of thing could be reprimanded because the option to participate in it was restricted to those who had enough money to make an impact on the market. But now a gathering of retards with a couple of hundred dollars to throw into AMC can make a massive difference, and what can you/should you do about it?
It does kind of raise questions about stocks in the current era. If it isn't an organised intentional scheme to raise stock prices and then sell everything, yet there is a gathering of people who purely by talking about certain stocks on a public platform can make the value skyrocket, is it somehow illegal?
It used to be that the people doing this sort of thing could be reprimanded because the option to participate in it was restricted to those who had enough money to make an impact on the market. But now a gathering of retards with a couple of hundred dollars to throw into AMC can make a massive difference, and what can you/should you do about it?
Pump and dump, they find what will trend with the Reddit set and by extension the rest of novice investors then infuse it with cash to create a frenzy. The price is driven up in tranches then sold by the firms periodically at modest gains so as not to attract SEC attention.