Comments on: “Dear FTC: please adopt tougher regulations…”

By: Deoxy

Deoxy — Tue, 14 Nov 2006 16:51:45 +0000

“Is that a violation of the securities laws?”

I seriously doubt it. Here’s a much worse example of something perfctly legal:

Short-sell a companies stock. Announce a nasty lawsuit. Profit. Find some way to get out of actually following through on said lawsuit.

Perfectly legal. Completely immoral.

By: Ron Coleman

Ron Coleman — Tue, 14 Nov 2006 14:10:29 +0000

Is that a violation of the securities laws?

By: Deoxy

Deoxy — Tue, 14 Nov 2006 13:08:15 +0000

I belive the general term for that is “rent seeking” – not the tradition method of doing so, but the same underlying concept (modify the rules of the game for my benefit).

Short-selling is a particularly abusabl form of market activity, just generally speaking, as it’s much easier to get a stock price to drop than to rise.