short squeezing is not illegal, you dumbfuck. it is how the market works. it is basic economics. if more people buy than sell, the price goes up. too bad if you sold short because you took a risk selling a borrowed stock you don’t own with the hope you could buy it later for cheaper than it costs today.
It says "a scheme to manipulate the price or availability of a stock in order to create a short squeeze is illegal." Telling people to buy a stock does not qualify as "a scheme to manipulate the price or availability of a stock." It is free speech and basic market mechanics. What robinhood and other platforms did to restrict trading and even liquidate their clients' shares without permission to save their parent company's bottom line was illegal price manipulation.
People are promoting the idea of buy and hold to create a short squeeze directly though. There is a difference in saying that there is a value play because a short squeeze may happen as an undervalued stock has high short interest. GME is vastly overvalued by any metric currently and there are tons of people promoting the idea that buying and holding will CREATE a short squeeze. It's a big difference.
short squeezing is not illegal, you dumbfuck. it is how the market works. it is basic economics. if more people buy than sell, the price goes up. too bad if you sold short because you took a risk selling a borrowed stock you don’t own with the hope you could buy it later for cheaper than it costs today.
It is illegal. It's explicitly stated as being illegal.
7.
https://www.sec.gov/investor/pubs/regsho.htm
It says "a scheme to manipulate the price or availability of a stock in order to create a short squeeze is illegal." Telling people to buy a stock does not qualify as "a scheme to manipulate the price or availability of a stock." It is free speech and basic market mechanics. What robinhood and other platforms did to restrict trading and even liquidate their clients' shares without permission to save their parent company's bottom line was illegal price manipulation.
People are promoting the idea of buy and hold to create a short squeeze directly though. There is a difference in saying that there is a value play because a short squeeze may happen as an undervalued stock has high short interest. GME is vastly overvalued by any metric currently and there are tons of people promoting the idea that buying and holding will CREATE a short squeeze. It's a big difference.