Market/Financial Thread

[southsider2k5]

6 minutes ago, ron883 said:

@southsider2k5 - this may be out of your ballpark, but do you have any idea if the aforementioned redditer can face serious consequences since he is a licensed securities broker?

It is MUCH easier to punish someone who is licensed.  They can have that license revoked and be barred from trading securities for good, as well as facing large fines on the top end.  Their firm can also face fines into the millions of dollars depending on the case and what they are charged with.

In order to get that license, you have to pass a test that talks about all of the things you can and cannot talk about and advise clients on.  Violate those, and it opens up a door for series consequences.  Trust me when I say that FINRA and the SEC will be looking for people to make examples of here.

[caulfield12]

https://www.foxbusiness.com/markets/barstools-portnoy-invests-amc-stock-losing-700k-gamestop
 

Will give Dave Portnoy credit for allowing himself to look dumb in public.

Going by the stock charts, he’s probably down around roughly another $100,000 on AMC.

That said, long term...many months or perhaps 2 years out, he might get back to even.   But there’s also equivalent odds he could lose his entire investment with a bankruptcy restructuring.

This feels like a gambler’s mentality to go right back into the market after getting crushed on GME, attempting to make up for the previous $700k loss.

[bmags]

interesting stuff. I think I do believe that something like real-time settlement would be less beneficial for those currently clamoring for it than the current system. The no fees, cheap options trading world that made GME possible also are what led it to blow up. 

https://www.dtcc.com/dtcc-connection/articles/2021/february/04/why-shortening-the-settlement-cycle-will-benefit-the-industry-and-investors

[southsider2k5]

51 minutes ago, bmags said:

interesting stuff. I think I do believe that something like real-time settlement would be less beneficial for those currently clamoring for it than the current system. The no fees, cheap options trading world that made GME possible also are what led it to blow up. 

https://www.dtcc.com/dtcc-connection/articles/2021/february/04/why-shortening-the-settlement-cycle-will-benefit-the-industry-and-investors

T+2 is a relic of the days  when delivery meant the literal physical delivery of shares of stock certificates.  In 2021, there is zero reason for T+2.

[Texsox]

8 hours ago, southsider2k5 said:

T+2 is a relic of the days  when delivery meant the literal physical delivery of shares of stock certificates.  In 2021, there is zero reason for T+2.

I visited a customer who had framed Enron shares on his wall. He said he bought the certificates on Ebay and framed them as a reminder to always invest in himself. I always wondered if they were fakes. 

[southsider2k5]

2 hours ago, Texsox said:

I visited a customer who had framed Enron shares on his wall. He said he bought the certificates on Ebay and framed them as a reminder to always invest in himself. I always wondered if they were fakes. 

You can still request physical delivery of stocks, some companies do deliver a decretive certificate upon request.  Actual clearing in 2021 is all digital.

[caulfield12]

https://www.yahoo.com/entertainment/were-cocky-amc-investors-reflect-181841782.html

[Texsox]

Moderator coup, movie deals, profit splits internet forum explodes. 

https://www.insider.com/wallstreetbets-reddit-bans-moderators-gamestop-started-movie-deal-coup-2021-2

[caulfield12]

18 hours ago, Texsox said:

Moderator coup, movie deals, profit splits internet forum explodes. 

https://www.insider.com/wallstreetbets-reddit-bans-moderators-gamestop-started-movie-deal-coup-2021-2

Seems the original founder already sold the movie rights for a figure rumored to be in the low six figures.

Greed never fails to bring out the worst in people.

[Texsox]

1 hour ago, caulfield12 said:

Seems the original founder already sold the movie rights for a figure rumored to be in the low six figures.

Greed never fails to bring out the worst in people.

SS2K5 is shopping the movie rights to this place. So far we can get a movie done and it will only cost us half a million. 

[caulfield12]

14 minutes ago, Texsox said:

SS2K5 is shopping the movie rights to this place. So far we can get a movie done and it will only cost us half a million. 

I just want to know who’s going to play Greg775...?   
 

“Searching” is one of the first movies I can recall that relies almost entirely on technology to tell the story, but this one might require claymation figures to bring it to life.

At any rate, Liam Hendriks definitely deserves some residuals.

[Soxbadger]

Whoever paid money for the rights is foolish. You could have done this movie similar to social network and paid 0 for it. Reddit is a public forum. Not to mention the founder is worthless as he had no role in the recent GME/meme stock moves.

But if anyone is reading and wants to give me $100k for some rights, id be glad to sell them. 

[Texsox]

1 hour ago, Soxbadger said:

Whoever paid money for the rights is foolish. You could have done this movie similar to social network and paid 0 for it. Reddit is a public forum. Not to mention the founder is worthless as he had no role in the recent GME/meme stock moves.

But if anyone is reading and wants to give me $100k for some rights, id be glad to sell them. 

I'm shorting your rights. 

[Texsox]

1 hour ago, caulfield12 said:

I just want to know who’s going to play Greg775...?   
 

“Searching” is one of the first movies I can recall that relies almost entirely on technology to tell the story, but this one might require claymation figures to bring it to life.

At any rate, Liam Hendriks definitely deserves some residuals.

Dustin Hoffman. 

[southsider2k5]

1 hour ago, Texsox said:

Dustin Hoffman. 

We need like a 60 year old McLovin

[southsider2k5]

Young Robinhood trader committed suicide thinking he owed almost 3/4 of a million in margin call.

https://www.nbcchicago.com/news/local/family-sues-robinhood-after-naperville-college-student-died-by-suicide-thinking-he-owned-730k/2432893/?_osource=SocialFlowFB_CHBrand

[Balta1701]

1 hour ago, southsider2k5 said:

Young Robinhood trader committed suicide thinking he owed almost 3/4 of a million in margin call.

https://www.nbcchicago.com/news/local/family-sues-robinhood-after-naperville-college-student-died-by-suicide-thinking-he-owned-730k/2432893/?_osource=SocialFlowFB_CHBrand

“Thinking”? So did he not actually owe that much somehow?

[Texsox]

9 hours ago, Balta1701 said:

“Thinking”? So did he not actually owe that much somehow?

No he didn't. The easiest way to think of it was he had bets on both teams. He was going to win one of those bets. Robin hood's app was trying to get him to pay his losses while ignoring his winnings. 

In a side note,  this is old news that a media company is pulling up to capture eyeballs. 

[bmags]

17 minutes ago, Texsox said:

No he didn't. The easiest way to think of it was he had bets on both teams. He was going to win one of those bets. Robin hood's app was trying to get him to pay his losses while ignoring his winnings. 

In a side note,  this is old news that a media company is pulling up to capture eyeballs. 

the lawsuit was just filed on Monday.

[caulfield12]

2 minutes ago, bmags said:

the lawsuit was just filed on Monday.

But the actual incident/suicide must be a ways back...but now all the knives are coming out for RH because of all the public attention, and potential IPO?

[bmags]

3 minutes ago, caulfield12 said:

But the actual incident/suicide must be a ways back...but now all the knives are coming out for RH because of all the public attention, and potential IPO?

Yes I'm sure the editors at NBC Chicago are following orders to take down RH before they get to an IPO. 

The incident happened in June. The lawsuit was filed this week. Seems like a normal timeframe. Seems like a normal follow-up on a local story. Maybe they think a lawsuit is more likely to win because of late June, but more likely it took months to figure out if they had a case that had merit.

 

 

[caulfield12]

2 minutes ago, bmags said:

Yes I'm sure the editors at NBC Chicago are following orders to take down RH before they get to an IPO. 

The incident happened in June. The lawsuit was filed this week. Seems like a normal timeframe. Seems like a normal follow-up on a local story. Maybe they think a lawsuit is more likely to win because of late June, but more likely it took months to figure out if they had a case that had merit.

 

 

Not take down obviously, but it (the situation outlined here) certainly dovetails with the discussions over the last couple of weeks, especially margin trading and short squeezes being terms that the majority of Americans, let alone high schoolers, aren’t 100% familiar with.

My guess is the lawsuit was partially a result of recent events, but maybe it was happening all along and the timelines just conveniently converged.

And with so many billion+ companies emerging in the last five or so years, there will undoubtedly be even more lawsuits.  For example, at what age can we hold corporations at least partially responsible for the actions of customers?  Should a 17 or 18 year old be able to set up their own trading account?  Why/why not?   We certainly wouldn’t have taken the money away had he earned hundreds of thousands.  
 

In the 2000’s, despite so many fraudulent subprime loan applications being approved without even simple salary checks, how many of those Mnuchin-esque firms were held accountable in any way?   How many homes were foreclosed on?  Or student loans taken on that weren’t repaid, or could never realistically be repaid?

[bmags]

3 minutes ago, caulfield12 said:

Not take down obviously, but it (the situation outlined here) certainly dovetails with the discussions over the last couple of weeks, especially margin trading and short squeezes being terms that the majority of Americans, let alone high schoolers, aren’t 100% familiar with.

My guess is the lawsuit was partially a result of recent events, but maybe it was happening all along and the timelines just conveniently converged.

And with so many billion+ companies emerging in the last five or so years, there will undoubtedly be even more lawsuits.  For example, at what age can we hold corporations at least partially responsible for the actions of customers?  Should a 17 or 18 year old be able to set up their own trading account?  Why/why not?   We certainly wouldn’t have taken the money away had he earned hundreds of thousands.  
 

In the 2000’s, despite so many fraudulent subprime loan applications being approved without even simple salary checks, how many of those Mnuchin-esque firms were held accountable in any way?   How many homes were foreclosed on?  Or student loans taken on that weren’t repaid, or could never realistically be repaid?

cool questions but your original defense  was toward the article as clickbait not the lawsuit being filed.

[Texsox]

54 minutes ago, bmags said:

the lawsuit was just filed on Monday.

Thank you. I missed that when I read the article. Nice timing by the attorney.  Robin hood may be in the mood for a quick settlement. 

That helped me once.

[bmags]

7 minutes ago, Texsox said:

Thank you. I missed that when I read the article. Nice timing by the attorney.  Robin hood may be in the mood for a quick settlement. 

That helped me once.

No way they'd want a public lawsuit now, and their comments in the article make it sound like they want this to go away.

I have to say it really is obnoxious how long "startups" take to move on customer service. For a while there was a zappos ethos in tech that perhaps over emphasized it. Now it's the last thing added with just some shitty chatbots.

But schwab, etrade, etc all have zero commission trading. Had he been with one of them he'd have his own contact he could have reached out to. He'd also have had to explicitly applied for an options account. RH had been defaulting everyone to margin accounts, too. With finance, healthcare, you'd be better off betting on the dinosaur institutions improving their UI than startups promising the world when by just skirting rules until they are big enough to be a problem.