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Showing posts from March, 2023

The MMTLP Debacle: Market Manipulation and Regulatory Corruption

Anyone interested in helping me continuing my reporting consider supporting my work:  Here Call for the resignation of Robert W. Cook President and CEO of FINRA https://www.change.org/p/call-for-the-resignation-of-robert-w-cook-president-and-ceo-of-finra?recruiter=1290732141&recruited_by_id=56a1f760-8969-11ed-ab67-1bfd823b5eef&share_bandit_exp=initial-35191586-en-US      The tale of Torchlight Energy Resources is a cautionary one, a warning about the murky world of finance where retail investors are often left at the mercy of market makers and regulatory bodies. It all began innocuously enough in early 2020, with the company seeking to raise capital for drilling projects on their main asset, 97,500 acres of oil-rich land in Orogrande, Texas. However, as is too often the case when a company is targeted by aggressive and predatory short sellers, things took a dark turn.      Short sellers have a vested interest in the failure of a company, and th...

The Art of the Bear Raid: A Brief History and Analysis

     Anyone interested in helping me continuing my reporting consider supporting my work:  Here      It's an old and storied tradition in the investment world: the bear raid. For centuries, investors and traders have been using this tactic to make money by driving down the price of a stock, a bond, or a commodity. But what is a bear raid, how does it work, And why do some people consider it unethical or even illegal?      A bear raid is essentially a coordinated effort by a group of investors to sell a large amount of a security in a short period of time, with the goal of creating panic and driving down the price. The name "bear" comes from the idea of a bear attacking its prey by swiping downward with its paw – just as the investors in a bear raid aim to bring down the price of a security.      Bear raids can take different forms depending on the market and the security being targeted. In the stock market, for example, a ...

The History and Ongoing Controversies Surrounding Reg SHO: A Look at Short Selling Regulation in the Stock Market

Anyone interested in helping me continuing my reporting consider supporting my work:  Here Introduction      For years, Wall Street has been the subject of scrutiny from both the media and the public. One of the most criticized areas of finance is short selling, which involves betting against a stock's price. While some see it as a valuable tool for uncovering overvalued stocks, others view it as a destructive force that harms companies and their shareholders.      The Securities and Exchange Commission (SEC) has attempted to regulate short selling through a program known as Regulation SHO (RegSHO). While the program has been in place for over a decade, it has been plagued by problems and criticisms from both sides of the debate. In this article, we will explore the history of RegSHO, its problems, and its impact on the financial world. A Brief History of Short Selling      Before diving into RegSHO, it's important to understand the hist...

The Naked Truth: A History of Naked Short Selling and its Controversial Legacy in Finance

Anyone interested in helping me continuing my reporting consider supporting my work:  Here      There's a well-known adage in the financial world: "Buy low, sell high." It's a straightforward and time-tested way to make a profit, but what if there was a way to do the exact opposite? That's where naked short selling comes in. It's a practice that has been controversial since its inception, with some claiming it's an essential tool for market liquidity, while others argue it's a form of financial fraud that undermines the integrity of the financial system.      So, what is naked short selling? Why is it so controversial? And how did it come to be in the first place? In this article, we'll explore the history of naked short selling, tracing its roots from the early days of the stock market to the present day. The Early Days of Short Selling:     Short selling is a practice where investors borrow shares of a stock from a broker, sell th...

Dirty Tricks: The Deceptive Practice of Stock Washing

Anyone interested in helping me continuing my reporting consider supporting my work:  Here      In the shadowy world of high finance, there are few tactics as brazen and deceitful as stock washing. This devious technique, which involves artificially inflating the price of a stock through a series of bogus trades and then selling it off for a quick profit, is a favorite among unscrupulous traders and manipulators. But now, as the markets continue to fall from recent dizzying heights, it seems that stock washing is once again rearing its ugly head, leaving honest investors to wonder: who can they trust in this rigged game? The Basics of Washing Stocks      To understand washing stocks, we need to start with the basics. A stock creates a transaction on the stock exchange every time it is bought or sold, and this transaction is recorded in the trading volume. Trading volume is an important metric for investors as it indicates the stock's liquidity and popu...

The Dark Art of Stock Spoofing: How Traders Manipulate the Market

Anyone interested in helping me continuing my reporting consider supporting my work:  Here      As more and more people are drawn to the stock market, it's critical that novice investors are aware of the insidious practice of stock spoofing. This deceitful tactic has been a scourge of the financial industry for years, with false orders being placed to create the impression of demand or supply, causing momentary price fluctuations that can be exploited for financial gain. Although it has been prohibited for many years, stock spoofing's history stretches back decades, with multiple examples of large-scale manipulation resulting in significant losses for investors. If you're new to investing, understanding stock spoofing is crucial to protect yourself from being taken advantage of by unscrupulous actors in the market. The Origins of Stock Spoofing      To understand the origins of stock spoofing, one must go back to the early days of the stock market when...

Global Tech Industries Group (GTII): A Deep Dive into the Squeeze Potential

Anyone interested in helping me continuing my reporting consider supporting my work:  Here      Global Tech Industries Group (GTII) is a company that has piqued the interest of investors looking to squeeze the potential of its stock. Investors in the company eagerly await news of a possible catalyst that could trigger the squeeze as an SEC ruling looms, the acquisition of 1-800 Lawyer nears, and the prospect of a dividend approaches, coupled with an ongoing lawsuit and a dual listing on Upstream, these critical developments may conspire to create a perfect storm that could force short sellers to scramble to cover their positions, potentially triggering a dramatic surge in the stock's value.      Let's get clear on what a squeeze really means before we proceed. A squeeze arises when traders who have shorted a stock, i.e., borrowed shares of a company's stock and sold them with the intention of repurchasing them at a lower price, are compelled to buy bac...