Billionaire Investor Mark Cuban Says Reddit Stock Traders Have 'Every Right To Kick Wall Street's Ass' PA
Billionaire investor Mark Cuban has said Reddit stock traders have every right to kick Wall Streetâs âold school assâ.
In a new blog post, Cuban criticised an outdated Wall Street that âhas not changed much in generationsâ. The result of this is a new wave of traders, who he dubs the âStore of Value Generationâ, that no longer care what Wall Street thinks, or what it says about valuations.
Last week, Wall Street was up in arms after a group of tech-savvy Reddit users, WallStreetBets, joined forces to increase video game retailer GameStopâs share price tenfold in a matter of weeks.
The group had noticed that hedge fund Melvin Capital had betted against GameStop by short-selling its shares, meaning it stood to gain if GameStop value went down and lose if it went up. Determined to flip the script, Reddit members quickly started to pile into Gamestop so Melvin Capital would be hit by the huge losses, otherwise known as a âshort squeezeâ.
In a blog post defending the group, Cuban said there was no difference between those who follow advice from Reddit or those that get their information from traditional outlets like Bloomberg.
Cuban said the Store of Value generationâs special power was in âfinancial unityâ.
âThey know that the more they work together, the less power Wall Street has. They know that fat and happy Wall Street has become slow, stale and set in their ways, which makes them an easier than anyone would expect target,â Cuban said.
âAs a group, they can target any hedge fund, any stock, any time, for any reason and change the game,â he said, adding that it was âno different than a major Wall Street analyst making a major callâ and moving âstock by getting their Whale followers or clients to buy or sellâ.
âNow WallStreetBets and the people who follow it, the collective, can do the same, but with much more power and impact. We as a country will be far better off if we understand them, respect them and learn from them, quickly,â he added.
He urged his readers not to view this negatively, writing that being able to have an impact on something that is of significance could be âamazing and greatâ for the US.
âIt can be absolutely positive. Push up the stock of a company that has a strong social mission they support. Push up the stock of a company that offers equity to their employees at the lowest levels so they can sell into the market and gain wealth,â he said as examples.
âHowever, this is exactly what Wall Street hates and will fight because it moves the power out of their hands,â he added.
SenateMajorityLeader on February 1st, 2021 at 20:53 UTC »
Yes, we should have a fair chance and we would if the SEC and White House would follow the law.
Dear SEC and President Biden,
I am calling on you today, pursuant to 15 U.S.C.A. § 78i, titled Manipulation of Security Prices, to prohibit manipulative and deceptive tactics that artificially depresses the price of GME and AMC securities in contravention of the laws of the United States.
Section 78i(a) clearly states that "It shall be unlawful for any person, directly or indirectly, by the use of the mails or any means or instrumentality of interstate commerce, or of any facility of any national securities exchange, or for any member of a national securities exchange -- (2) To effect, alone or with 1 or more other persons, a series of transactions in any security registered on a national securities exchange, any security not so registered, or in connection with any security-based swap or security-based swap agreement with respect to such security creating actual or apparent active trading in such security, or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others."
Currently, GME and AMC stock prices are actively being manipulated using a mechanism called "short ladder attacks" to depress the price of these stocks in contravention of 15 U.S.C.A. § 78i. "Short ladder attacks" occur when large institutions in possession of the aforementioned stocks sell them for just less than market value in rapid succession between one another in order to drive the price down. The fact that short ladder attacks exist is apparent from on-going market activity that can be seen here https://www.nasdaq.com/market-activity/stocks/gme/latest-real-time-trades and https://imgur.com/gallery/Y9TVxCj Such blatant attacks readily establishes prima facie case of market manipulation and must be investigated by the SEC immediately. Further silence from the SEC on this matter, which can be investigated quite quickly, not only encourages further market manipulation but also further diminishes public trust and faith in the U.S. Government.
Finally, section 78i(f) makes it clear that "Any person who willfully participates in any act or transaction in violation of subsections (a), (b), or (c) of this section, shall be liable to any person who shall purchase or sell any security at a price which was affected by such act or transaction."
I am calling on you to do your job. The direct manipulation of GME and AMC stock prices is on-going and hurts the public interest. You must act now before it is too late.
Sincerely,
Your Average Retail Investor
tinypantsondeck on February 1st, 2021 at 19:08 UTC »
He needs to give WSB ad space on the unis...I want to see Luka with WSB on his ass
Edit: Who the fuck awarded this shit put that in GME
Edit#2: y’all some turbo retards
8Kaido on February 1st, 2021 at 19:06 UTC »
Shark tank man