the SEC

[LLCox]

Bringing the hammer down on the little guy while you can't even tell they are around when it comes to policing the Hedge funds et al. I do not participate in the stock market but this pissed me off.


https://www.investmentexecutive.com...-suspends-15-stocks-citing-social-media-hype/


"The suspensions come as part of the SEC’s “continuing effort to respond to potential attempts to exploit investors during the recent market volatility,” the regulator said"

 

[LLCox]

https://www.sec.gov/news/press-release/2021-35



Press Release
SEC Suspends Trading in Multiple Issuers Based on Social Media and Trading Activity

 

[RobDownSouth]

The only suspended stock I recognized on the list was Village Tea, which has all the earmarks of a classic "pump and dump" stock.

An "Environmentally friendly tea growers, based in Africa, which will report its earnings and dividends quoted in Bitcoin (and had a failed Kickstarter campaign that only raised two thousand dollars)".

 

[siobhancan99]

There's very good reasons for this that actually are there to protect the little guy. What happens is someone hypes these bullshit worthless stocks on social media, prompting a buying frenzy. it drives the price up say, from 2 dollars a share to 8. you get in at 8 thinking its going to 16...

then suddenly everyone realizes there's no assets or product or... anything. the stock is worth nothing. the guy who sold it to you at 8 laughs all the way to the bank.

 

[LLCox]

... . What happens is someone hypes these bullshit worthless stocks on social media, prompting a buying frenzy. it drives the price up say, from 2 dollars a share to 8. you get in at 8 thinking its going to 16...

then suddenly everyone realizes there's no assets or product or... anything. the stock is worth nothing. the guy who sold it to you at 8 laughs all the way to the bank.

Yes... I understood this before I posted the thread. Not my point