Would this be allowed?

  • Thread starter Manchot
  • Start date
  • #1
468
4
I was just thinking about something today. Suppose that someone who was strongly tied to a company both in terms of name and in terms of stock (such as Bill Gates of Microsoft or Sergei & Larry of Google) decided to dump all of their stock in their company on one day, for no apparent reason. Presumably, this would cause investors to lose lots of confidence in the stock, and the price would fall tremendously. Would that person be allowed to buy back the stock that they sold in addition to more than they originally owned? Something like cornering the market, only not in regards to a commodity.
 

Answers and Replies

  • #2
dduardo
Staff Emeritus
1,890
3
1) Someone would have to be willing to buy the stock
2) There are regulations for these types of things
 
  • #3
Pengwuino
Gold Member
4,989
16
As dduardo said, someone would have to be willing to buy the stock and if someone like Bill Gates did sell these tremendous amounts of stock, people would start thinking its the end of the world and Armaggedon is at hand and wouldn't touch that stock with a 10 foot poll. Just think what might be going on in the company if a major shareholder started dumping it like it was the AIDS virus.

Plus the SEC would go bananas and all hell would really break loose if people were actually buying the stocks because they would think something incredibly fishy is going on and there would be an investigation that would be spraypainted on every major news front page for a year.
 
  • #4
rachmaninoff
Pengwuino said:
the SEC would go bananas
This cracks me up for no logical reason. Securities fraud... & bananas... :rofl:
 
  • #5
Pengwuino
Gold Member
4,989
16
rachmaninoff said:
This cracks me up for no logical reason. Securities fraud... & bananas... :rofl:
:rofl: :rofl: :rofl: i like bananas too
 
  • #6
Archon
Pengwuino said:
:rofl: :rofl: :rofl: i like bananas too
...and I like securities fraud...together we crack rachmaninoff up.
 
  • #7
Pengwuino
Gold Member
4,989
16
Archon said:
...and I like securities fraud...together we crack rachmaninoff up.
Let's follow him...

ill yell banana

you yell securities fraud

We'll drive him nuts!
 
  • #8
rachmaninoff
Pengwuino said:
We'll drive him nuts!
What, now squirrels are in the picture?
 
  • #9
Pengwuino
Gold Member
4,989
16
rachmaninoff said:
What, now squirrels are in the picture?
I dunno....

maybe...

banana!
 

Related Threads on Would this be allowed?

  • Last Post
Replies
5
Views
1K
  • Last Post
Replies
17
Views
2K
  • Last Post
Replies
12
Views
2K
Replies
1
Views
479
Replies
12
Views
3K
  • Poll
  • Last Post
Replies
15
Views
2K
  • Last Post
Replies
5
Views
3K
Replies
21
Views
15K
  • Last Post
3
Replies
55
Views
7K
Top