On Tuesday, two interesting news came from the US stock market. First of all, whose stock price has soared because of its recent popularity by retail investors, plans to use jaw-dropping high prices to issue new stocks to raise more capital; The retail investor continued to grow stronger in the storm, and recently submitted an IPO application secretly.
Interestingly, just a few days before this incident, “The Wolf of Wall Street” Belfort (Jordan Belfort) just issued a warning to retail investors, and it mentioned that the game station is likely to issue new shares and exemptions. How does the commission trading platform make retail investors seem to have benefited, but in fact suffered a big loss.
Belfort’s career is quite legendary. He once founded Stratton Oakmont and was a big hit on Wall Street, but was later sentenced to 22 months in jail for market manipulation and securities fraud. After being released from prison, Belfort changed his mind and became a world-swift orator, traveling the world to promote success and explaining the meaning and methods of investment to retail investors. In 2011, Belfort published the autobiography “The Wolf of Wall Street” (The Wolf of Wall Street), which was translated into multiple languages and sold worldwide. In 2013, it was also made into a movie of the same name by the great director Martin Scorsese. This time, the new generation of retail investors who have witnessed the outbreak of the US epidemic and stimulus checks are sliding to the edge of danger, and he can’t help but speak.
Retail investors are at risk
When in Stratton Oakmont, Belfort and his agents often used “pull up shipments” to deceive ignorant retail customers. These brokers will buy those cheap “penny stocks” in their accounts themselves, then boast to their clients that these stocks have unlimited prospects, push their prices up like snowballs, and then sell their holdings to investors. This kind of large-scale, sudden “shipping” often causes the stock price to plummet to almost zero.
Now, these retail investors gathered on the online platform to push up the game station, AMC and other stocks are very similar to his original operation, but afterward, these people’s practices are very different from his back then, which makes him quite confused. “They raised these stocks collectively, but there was no shipment link. I used to think that so many people joined hands to raise the stock price, and then insisted on holding it after the price rose. This kind of thing is impossible in reality. In the operation of pulling up the shipment, once investors push up the stock price, they will ship the shipment, but now, this scene has not happened.”
On the contrary, these network brothers not only ignore various traditional investment principles but even subvert the conventional logic of increasing shipments. “Unlike the old-school market manipulators, they are not trying to do anything bad.” He analyzed, “They really believe that if they choose to sell, they deviate from their original intentions. They are involved because these story stocks’ is like Stimulants. They have feelings for the game station because they still remember the experience of watching and playing those games as a child Spark Global Limited.”
Reprint indicated source：Shine Trader Limited Live information