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venmos1

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Firms have plenty of stocks on restricted lists. It's not illegal. When I was at UBS they wouldn't let anyone buy Canopy Growth or any other company involved in cannabis (except SMG). Highly volatile stocks always get tightened margin requirements or are marked as non-marginable. Nothing about this is out of the ordinary other than the boiler room antics of r/WallStreetBets.
im new to the stock market game, but why werent they flagging these stocks as volatile when they were growing like crazy? It wasnt until after they realized what was going on at GME. then people went at AMC the same way. then everything changed. Just all of a sudden stopping people from buying a stock they bought hours before is not illegal?
 

Rb0891

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im new to the stock market game, but why werent they flagging these stocks as volatile when they were growing like crazy? It wasnt until after they realized what was going on at GME. then people went at AMC the same way. then everything changed. Just all of a sudden stopping people from buying a stock they bought hours before is not illegal?
Yes and I will lock my own balls if there was not any collusion going on...
 

Pribilof

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im new to the stock market game, but why werent they flagging these stocks as volatile when they were growing like crazy? It wasnt until after they realized what was going on at GME. then people went at AMC the same way. then everything changed. Just all of a sudden stopping people from buying a stock they bought hours before is not illegal?

For something with as much news coverage as this all it takes is one firm to lock up trading then the other will do the same. Otherwise all the trading will just migrate to a different platform. The firms are in a tough spot. Some people are pissed that trading was restricted. Next week you'll hear from all the people who lost 60% of their money in 2 days this week complaining that the firms didn't prevent them from buying on Monday.

No firm wants their name in the next headline:
Apparent suicide by 20-year-old Robinhood trader who saw a negative $730,000 balance prompts app to make changes - CNN

This is why alternative investments like private equity require investors to be either accredited investors or a qualified purchaser.

Accredited Investor:
  • A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
  • A natural person who has an individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person
  • Professional investors are now included automatically under revisions to Reg D passed in August 2020.

Qualified Purchaser:
  • an individual or a family-owned business that owns $5 million or more in investments. The term “investments” shouldn’t include a primary residence or any property used for business.
  • an individual or entity (for example, a fund manager) that invests at least $25 million in private capital, on its own account or behalf of other qualified purchasers;
  • a trust sponsored and managed by qualified purchasers; or
  • an entity owned entirely by qualified purchasers.
 

Rb0891

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For something with as much news coverage as this all it takes is one firm to lock up trading then the other will do the same. Otherwise all the trading will just migrate to a different platform. The firms are in a tough spot. Some people are pissed that trading was restricted. Next week you'll hear from all the people who lost 60% of their money in 2 days this week complaining that the firms didn't prevent them from buying on Monday.

No firm wants their name in the next headline:
Apparent suicide by 20-year-old Robinhood trader who saw a negative $730,000 balance prompts app to make changes - CNN

This is why alternative investments like private equity require investors to be either accredited investors or a qualified purchaser.

Accredited Investor:
  • A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
  • A natural person who has an individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person
  • Professional investors are now included automatically under revisions to Reg D passed in August 2020.

Qualified Purchaser:
  • an individual or a family-owned business that owns $5 million or more in investments. The term “investments” shouldn’t include a primary residence or any property used for business.
  • an individual or entity (for example, a fund manager) that invests at least $25 million in private capital, on its own account or behalf of other qualified purchasers;
  • a trust sponsored and managed by qualified purchasers; or
  • an entity owned entirely by qualified purchasers.
Putting aside whether those rules are good - they probably are, I can't believe this is the first person that made a big financial mistake and killed themselves... certainly none of the "experts"
 

598

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The first time I saw this and really understood what was going on and how big enough money could rob anyone at any time, The Hunt boys got taken for a ride in their silver squeeze. How it ultimately unwound was a liquidation only order, which is exactly what was done here. Didn't force the Hunts to sell, but took away all the fuel to keep it going. Also a wonderful way for really big money guys to look like they lost their shirt in America and transfer that wealth offshore permanently. When you stick out too much successfully, there is always backdoor ways to take you down.
 

AustinSN

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Firms have plenty of stocks on restricted lists. It's not illegal. When I was at UBS they wouldn't let anyone buy Canopy Growth or any other company involved in cannabis (except SMG). Highly volatile stocks always get tightened margin requirements or are marked as non-marginable. Nothing about this is out of the ordinary other than the boiler room antics of r/WallStreetBets.

It's interesting it was only restricted to buying, and on several platforms across the spectrum, all at the same time.

Nothing happened with Bitcoin which they allow trading with, when it rose 30% in like 2 days?

Robinhood allows people to buy/sell options on 3x weighted ETFs on margin with nothing other than a warning, but an arbitrary amount of volatility has them killing only the purchase button?

It's obvious this wouldn't have happened if Citadel wasn't on the hook for billions from shorts that were too arrogant to walk away after the first round. Anyone that had 01/29 115c's have lost thousands because they locked out the bulls.
 

C2tuck

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I think the SEC should lock out hedge funds and MM tomorrow and give the individual investors a day of there own. **** those guys.
 

T.Man

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Kleptocrats will no doubt save and protect their precious Investor Class. Watch what comes down the pike next.
 

jeffh81

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7557EDBB-83DE-47F5-B615-AF6E39B251AD.jpeg
 

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