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Would this be allowed?

  1. Oct 31, 2005 #1
    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.
  2. jcsd
  3. Oct 31, 2005 #2


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    1) Someone would have to be willing to buy the stock
    2) There are regulations for these types of things
  4. Oct 31, 2005 #3


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    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.
  5. Oct 31, 2005 #4
    This cracks me up for no logical reason. Securities fraud... & bananas... :rofl:
  6. Oct 31, 2005 #5


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    :rofl: :rofl: :rofl: i like bananas too
  7. Nov 1, 2005 #6
    ...and I like securities fraud...together we crack rachmaninoff up.
  8. Nov 1, 2005 #7


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    Let's follow him...

    ill yell banana

    you yell securities fraud

    We'll drive him nuts!
  9. Nov 1, 2005 #8
    What, now squirrels are in the picture?
  10. Nov 1, 2005 #9


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    I dunno....


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