Robinhood and Pump and dump

maxsteam

csgohan4 said:

If I wanted to dump 30k into NIO, why should a platform stop me? A rubbish stock to some maybe a good one to others. 

Because pump and dump is illegal. You may be a stock manipulator or a victim. Either way, if there are very unusual movements in a stock, there should be a break in trading.

sevenhills

maxsteam said:

Because pump and dump is illegal. You may be a stock manipulator or a victim. Either way, if there are very unusual movements in a stock, there should be a break in trading.

Not sure if that is the case, but there was a time when gambling and alcohol were illegal.

csgohan4

maxsteam said:

csgohan4 said:

If I wanted to dump 30k into NIO, why should a platform stop me? A rubbish stock to some maybe a good one to others. 

Because pump and dump is illegal. You may be a stock manipulator or a victim. Either way, if there are very unusual movements in a stock, there should be a break in trading.

how is it illegal for me to post on youtube and say x stock is a good one 'potentially' but you may lose your money, but that's my opinion. It goes up in price and I benefit. 

Define unusual movements? Is it unusual for traders to see a jump in share to jump on the bandwagon too and snowball effect?
Or to put 30k on a stock when it was low and waiting for it to rocket?

if the stock tanks, I may want to liquidate my position, why should the platform stop me from doing so, and therefore mitigate my losses?

maxsteam

sevenhills said:

maxsteam said:

Because pump and dump is illegal. You may be a stock manipulator or a victim. Either way, if there are very unusual movements in a stock, there should be a break in trading.

Not sure if that is the case, but there was a time when gambling and alcohol were illegal.

If you look up definitions, you will see that it is something that someone who is breastfeeding can choose to do, which is obviously not illegal. The usual definition relating to equity trading is a form of organised fraud which is illegal on every recognised stock exchange.

Thrugelmir

csgohan4 said:

Wall street and hedge funds do it all the time.

According to who? 

maxsteam

Thrugelmir said:

csgohan4 said:

Wall street and hedge funds do it all the time.

According to who? 

According to the renowned publication "Breastfeeding for Beginners". There are different definitions of what constitutes Pump and Dump, even if we limit the discussions to the world of equities. The usual definition is an organised fraud.

HansOndabush

Mickey666 said:

Malthusian said:
Free speech is stifled all the time. It's illegal to shout "Fire!" in a crowded theatre, illegal to call someone the N word, 

. . . and yet the 'N word' can be heard all the time in films and rap music.  It's use seems to be accepted within certain ethnic groups but not within others.  

There's a lot worse in rap music, some of it disgusting.

maxsteam

csgohan4 said:
how is it illegal for me to post on youtube and say x stock is a good one 'potentially' but you may lose your money, but that's my opinion. It goes up in price and I benefit. 

That's not illegal and that's not pump and dump imho.
If you made up a story about a new mining deposit than has not yet been announced to the public, a fictional new life-changing medicine that is about to be released or a non-existant plan to take a company private at $4.20 when the market price is half that, then timed the release of the fake story. You could organise a following of minions to send out tip sheets or spread the word on social media after buying a stake in the company, then sell as the price rises. This would be fraud and it would be illegal.

eskbanker

maxsteam said:
There are different definitions of what constitutes Pump and Dump

I imagine there'll be some entertaining ones in here....

Mickey666

Malthusian said:

Mickey666 said:

Malthusian said:
Free speech is stifled all the time. It's illegal to shout "Fire!" in a crowded theatre, illegal to call someone the N word, 

. . . and yet the 'N word' can be heard all the time in films and rap music.  It's use seems to be accepted within certain ethnic groups but not within others.  

Using the N word in a song != calling someone the N word. Racist abuse is unacceptable and making rap music acceptable for good reasons. Sorry if my analogy triggered angst about how unbearably difficult it is to be a white man.

I watched the remake of 'Shaft' on Netflix recently (Samuel L Jackson version) and the n-word was frequently used in a normal conversational context.

No angst here though, just curiosity.