I'm not sure they ever really worked that way.
Stocks and trades
- Thread starter Hygro
- Start date
That may be how they were originally intended to work, but at this point, the stock market is like an old NES game that people discovered a bunch of hacks, glitches and exploits for ages ago...
So the original purpose/intent of the game is no longer relevant or valid. Its now all about impressing people with the speedruns using the glitches and hacks. That and/or discovering even deeper hidden hacks... which then of course tilts the old school "purists" who are used to playing with the old exploits and think that any newly discovered ones are blasphemous "cheats".
Hygro
soundcloud.com/hygro/
Kinda like that, but it pretty much fluctuates around the amount of money in the system which relates pretty closely to the real economy for reasons going both ways.
sendos
Immortal
I made $712 today on a trade.
Go Aussie mining companies.
Go Aussie mining companies.
A variant of a Tobin Tax, a micro tax on each transaction, would do a lot to stabilize the function capital markets are supposed to do. After that, just a proper marginal tax rate.
It says a lot about society that stocks are pretty much the only thing you can buy without paying tax.
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Efficient allocation of capital, right?
Even if the above were true, the social cost of disaster mitigation and of being responsible for unpacking criminality warrants deriving social income from rapid trading
Even if the above were true, the social cost of disaster mitigation and of being responsible for unpacking criminality warrants deriving social income from rapid trading
Don't forget hookers and blow.
Broken_Erika
Play with me.
US investor ‘Roaring Kitty’ sued over GameStop rally
Keith Gill, one of the most influential voices that pushed GameStop on the WallStreetBets Reddit forum, was hit with a lawsuit that accused him of misrepresenting himself as an amateur investor and profiting by artificially inflating the price of the stock.
The proposed class action against Gill, who adopted the online nickname “Roaring Kitty,” was filed Tuesday in federal court in Massachusetts. The suit said Gill was actually a licensed securities professional who manipulated the market to profit himself. Gill touted GameStop shares through an extensive social media presence on Youtube, Twitter and Reddit.
“Gill’s deceitful and manipulative conduct not only violated numerous industry regulations and rules, but also various securities laws by undermining the integrity of the market for GameStop shares,” the suit said. “He caused enormous losses not only to those who bought option contracts, but also to those who fell for Gill’s act and bought GameStop stock during the market frenzy at greatly inflated prices.”
The lawsuit said Gill, who has been written about extensively by Bloomberg, The New York Times, The Wall Street Journal and others, was far from being an amateur stock picker. Rather, he is a Chartered Financial Analyst who holds multiple broker licenses and was previously employed by Massachusetts Mutual Life Insurance Co. The lawsuit also named Mass Mutual and a brokerage subsidiary of the company as defendants, saying they had an obligation to supervise Gill’s activities in the market.
“In order to motivate amateur traders, Gill fashioned himself as a kind of Robin Hood and characterized securities professionals as villians,” the lawsuit said. “Gill, however, is no amateur. For many years, he actively worked as a professional in the investment and financial industries.”
The would-be plaintiff representing investors in the case, Christian Iovin of Washington state, sold $200,000 worth of call options on GameStop shares when the stock was below $100. The stock quickly eclipsed $400 a share, forcing him to buy the calls back at elevated prices.
The proposed class action against Gill, who adopted the online nickname “Roaring Kitty,” was filed Tuesday in federal court in Massachusetts. The suit said Gill was actually a licensed securities professional who manipulated the market to profit himself. Gill touted GameStop shares through an extensive social media presence on Youtube, Twitter and Reddit.
“Gill’s deceitful and manipulative conduct not only violated numerous industry regulations and rules, but also various securities laws by undermining the integrity of the market for GameStop shares,” the suit said. “He caused enormous losses not only to those who bought option contracts, but also to those who fell for Gill’s act and bought GameStop stock during the market frenzy at greatly inflated prices.”
The lawsuit said Gill, who has been written about extensively by Bloomberg, The New York Times, The Wall Street Journal and others, was far from being an amateur stock picker. Rather, he is a Chartered Financial Analyst who holds multiple broker licenses and was previously employed by Massachusetts Mutual Life Insurance Co. The lawsuit also named Mass Mutual and a brokerage subsidiary of the company as defendants, saying they had an obligation to supervise Gill’s activities in the market.
“In order to motivate amateur traders, Gill fashioned himself as a kind of Robin Hood and characterized securities professionals as villians,” the lawsuit said. “Gill, however, is no amateur. For many years, he actively worked as a professional in the investment and financial industries.”
The would-be plaintiff representing investors in the case, Christian Iovin of Washington state, sold $200,000 worth of call options on GameStop shares when the stock was below $100. The stock quickly eclipsed $400 a share, forcing him to buy the calls back at elevated prices.
^^^ 
Wall street greed rears its ugly face once again.
Wall street greed rears its ugly face once again.
you pays yer muney you takes yer chances...
GME back up to $130 because if this ice cream?
GameStop’s share price is surging once again – and though it’s not clear exactly why, it’s possible Reddit and an ice cream cone are responsible.
The price has gone from $45 to $130 in the last couple of days, but it was not clear why such an event happened. The last time around, the rapid increase was driven by a “short squeeze” – because so many hedge funds had bet against the stock, technical trading dynamics meant that any increase in price would be accelerated by them covering their positions – but analysts ruled that out this time around.
Mr Cohen is known as “Papa Cohen” on the Reddit forum, and is known to have a significant holding in the company. That means that his tweets have a particular pull for those who follow the stock – even if they might be largely incomprehensible to others.
One such tweet was posted by Mr Cohen on Wednesday evening. It showed a McDonald’s ice cream cone (above) and was accompanied by a frog emoji.
The price has gone from $45 to $130 in the last couple of days, but it was not clear why such an event happened. The last time around, the rapid increase was driven by a “short squeeze” – because so many hedge funds had bet against the stock, technical trading dynamics meant that any increase in price would be accelerated by them covering their positions – but analysts ruled that out this time around.
Mr Cohen is known as “Papa Cohen” on the Reddit forum, and is known to have a significant holding in the company. That means that his tweets have a particular pull for those who follow the stock – even if they might be largely incomprehensible to others.
One such tweet was posted by Mr Cohen on Wednesday evening. It showed a McDonald’s ice cream cone (above) and was accompanied by a frog emoji.
The single stock profit/risk balance can be unpredictable and hinge on the flavor of the moment. Looks like vanilla to me! Ride that train if you like. With fractional shares the tickets are cheap.
yung.carl.jung
Hey Bird! I'm Morose & Lugubrious
Completely agree, this idea has been flowing 'round Europe for the better part of 2 decades now, it's usually referred to as financial transaction tax. Should've been implemented 40 years ago.
the whole GME thing honestly smells more like manipulation than genuinge grassroots investor activism. I was very excited when I heard the news of small-scale investors trying to outdo hedge funds, but it is too good to believe.
this MFer right here. we've (correction: the people wealthy enough to invest in assets) seen unprecedented growth during a global pandemic, if that's not weird or irregular to you then you might want to question your understanding of how a market should work. every single day it becomes increasingly obvious that the stock market is not tied to any reality at all.
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I thought something similar:
But everyone involved knows this right? It is not just that we are the world's most enlightened investors? Fools and their money and all that.
What I would do is remove the "holding shares removes any responsibility for the company's actions" bit of corporation law, at least for companies (perhaps leave it in for individuals). So people could invest in the stock market without taking any responsibility for the companies that they invest in, but if funds do it they have to do due diligence to check the companies are not crooks.
Hygro
soundcloud.com/hygro/
Robinhood wouldn't let me remove the last $4.93 from my account (for like two weeks of trying) so I used it to buy a fractional GME. In the arrested gamma squeeze (not short squeeze) of last month some fractional shares were involuntarily closed out at $2000 a share so I figure a coffee can be a nice gamble instead.
Yesterday I could have sold everything and come out almost even. But my trading "strategy" is front row tickets to the show. Whether the show is a trip to the moon or a slowly sinking Titanic doesn't matter.
It does seem that GME is negatively correlated to the market, allegedly there's like 250 million shares owned and 50 million in the float, with short positions against it hidden by shorting the etfs that hold GME instead (I don't understand how that works though given that GME is negatively correlated and one stock in a basket, how how do you laser it that way). It seems the system is weirdly clogged on this one stock.
Yesterday I could have sold everything and come out almost even. But my trading "strategy" is front row tickets to the show. Whether the show is a trip to the moon or a slowly sinking Titanic doesn't matter.
It does seem that GME is negatively correlated to the market, allegedly there's like 250 million shares owned and 50 million in the float, with short positions against it hidden by shorting the etfs that hold GME instead (I don't understand how that works though given that GME is negatively correlated and one stock in a basket, how how do you laser it that way). It seems the system is weirdly clogged on this one stock.
How is the stock market supposed to work? It has always/mostly been a tool for the rich to get richer. Only since the creation of the IRA account has it been a tool for the those not rich to accumulate a modest amount of wealth. IPOs generate wealth for founders and capital for the company. After that it is a gambler's paradise that, when well played, makes you money. The market's continued rise after the dramatic fall is tied to several things: good underlying fundamentals for the future; the pandemic will end; relief payments; low expectation for inflation; low interest rates. The stock market is forward looking and changes in anticipation of future events and earnings. Once the shock and crash of last spring was over stocks looked and still look good. Bond yields are so low that money is drawn to stocks for better yields. The pandemic has cleared a lot of what looks like "dead wood" from the corporate forest. Trump's craziness is no longer an issue.
The market is tied to reality. The reality of what people with money to invest are willing to invest in. They have a multitude of choices: US stocks or bonds; foreign stocks and bonds, corporate or residential real estate; market options; currencies, including crypto; and politics. They can be specific (single company) or broad (indexes). They vote with their choices. Currently lots of folks are voting for stocks to be the best path to make money. Short term actions drive the long term picture and that picture/trend has been up for a long time. Someone told me yesterday that the market was due for 95% loss in the coming crash. Well, maybe, but not very likely. I would not bet on that outcome.
Now you may want the market to behave differently and serve some other goal and maybe that is your "should". The stock market is now and has been a tool for making money and the ways to do so have expanded steadily over time. One can invest with zero risk or great risk and the rewards/losses are commensurate with the risk one takes.
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innonimatu
the resident Cassandra
- Joined
- Dec 4, 2006
- Messages
- 15,374
Make it a contract tax on each and every sale that requires any contractual relation to be formed. Meaning person-to-person transactions that even now are not formalized in any way are not covered. But every formal one is. Every stock bough or sold, every bond. Every grocery card. Even service purchased. A stamp duty, 0.1% on every such translation, for the state to guarantee the recognition/enforcement of the contract. Large corporations depend entirely on that state power and on contracts, there's no escaping such a stamp duty.
Bestbank Tiger
Deity
Might be better to have a tax on flips or give individuals a certain number of tax free trades per month or year. That way you ding speculators but not retail investors, or for that matter pension funds and 401k plans.
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