General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forumsprominent stock short trader charged with securities fraud
basically he would get short a stock.
post about how the company was overvalued due to fraud or some other reason
stock would fall and he would cover his shorts and make millions
https://www.sec.gov/newsroom/press-releases/2024-89?utm_medium=email&utm_source=govdelivery
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jmbar2
(5,813 posts)chicoescuela
(1,317 posts)Johnny2X2X
(20,881 posts)The short a stock and then do everything in their power to drive that stock down. It's so wrong.
"Short selling a stock is when a trader borrows shares from a broker and immediately sells them with the expectation that the share price will fall shortly after. If it does, the trader can buy the shares back at the lower price, return them to the broker, and keep the difference, minus any loan interest, as profit."
I work at a fortune 100 company, we have a prominent investor who is short on our stock, he works for one of the big investment houses and is on TV all the time trashing our company. I think he ultimately failed and the stock has taken off. Might have even cashed out as I don't remember reading his garbage the last year or so. But it really hurt our company, for no reason other than greed, this guy was allowed to give biased assessments of our value for literally years. Dozens of his articles got posted all over.
moonshinegnomie
(2,818 posts)he would short a stock,tweet about it and would brag to colleagues that he did it so retail traders would dump the stock allowing him to cover for a quick profit. he called it taking candy from a baby.
superpatriotman
(6,409 posts)And get right back to work.
moonshinegnomie
(2,818 posts)they can and do hit stock manipulators like a ton of bricks. they have to disgorge all profits form the maniulations,plus pay a huge fine and usually get banned form trading and running any type of security based business.
you really dont want to get teh sec coming after you.