What makes WSB legal vs emails about imminent pump on an unspectacular stock?
What stops somebody from purchasing aged reddit accounts and then pumping up, upvoting their own threads?
What stops somebody from purchasing aged reddit accounts and then pumping up, upvoting their own threads?
Edit: hints = look at porn subreddits, /r/entrepreneur, stock subreddits. By the way, some of the moderators are making a killing too (by promoting their "own" people)
(Yes, this is a thing, and there is significant $$$ actually invested into this)
My question is what stops somebody pulling off the same trick on WSB and how do we know? How can we know? Does the SEC know how to tell?
> So if you buy stock with the purpose of pushing the price up so that other people will buy it, that’s market manipulation. If you buy stock hoping that the price will go up because other people buy it, that’s not market manipulation; that’s just normal. Those things are not so different. There is a “traditional four-part test for manipulation that has developed in case law”:
(1) That the accused had the ability to influence market prices; (2) that the accused specifically intended to create or effect a price or price trend that does not reflect legitimate forces of supply and demand; (3) that artificial prices existed; and (4) that the accused caused the artificial prices.It's would of course be a different story if the broker's unwillingness came from their participation in a price manipulation scheme. I don't think that's really plausible here, although I suppose I wouldn't rule it out given the crazy dumb things Robinhood has done in the past.
I think it is already happening. Search Reddit for Tootsie roll. One 3 yr old Reddit acct with no posts makes a flurry of posts about TR and it jumps 30% in 2 days.