LOL elites who love to bet against the market are freaking out. Let’s see how fast Congress acts to protect the hedge fund criminals that short sell stocks, and persecute regular people just buying a stock to help the company.
Wedbush's Michael Pachter, who's covered GameStop since 2002, said institutional investors aren't calling for his opinion on the "feeding frenzy."
www.google.com
I've been following this from a distance and I'll wait for the SEC investigation to make a judgement but this sounds suspiciously like the "pump and dump" schemes from the early 2000's.
If there's evidence the Reddit people conspired to move the stock price that could pose a problem for them.
Please tell me how many people buy a stock to not move the stock price.
Very few people outside of mutual funds can trade enough stocks to move a stock's price.
But
Enough individual purchases, especially bidding over the current price, can move the market.
The question the SEC will be asking is if this was a concerted effort and if the purchases were made as investments or as part of a scheme.
Everybody who buys a stock is certain the price will go up
Everybody who sells is certain the price will go down.
Attempting to manipulate a stock's price is illegal.
You may want to look up Howard Hughes' selling of AA stock in the early 60s. His actions caused AA stock to crash. (I think it was AA, might have been TWA) He ended up testifying before Congress and new legislation and regulations followed.