How the AMC and gamestop fiascos should be handled

Posted on: January 29, 2021 at 10:22:03 CT

To me, there are two entities in the process.

The first is the company that lists the stocks (the exchange). They are the ones that should create the rules of which the trading and methods can take place. It is their terms of service that cover it.

The second (a group) are the brokerage firms. They also create the rules by which investors use them to actually trade the stocks on their behalf. It is their terms of service that should cover it. (with the obvious footnote that the brokerage and listing rules have to be harmonized.

Any violation of those terms of service should be disputed through either arbitration or civil court (likely also spelled out in the terms of service).

Both companies should also have in the terms of service how changes to terms of service are held.

Assuming everything is in play, if, as a customer, you don't like the terms of service, go to another company that has terms of service you agree upon.

Instead, we have a massive SEC regulatory group that can change, almost at its whim depending on the law, the rules with no notice, and also no way to get around those regulations...and they are forced upon people...not through some sort of agreement.

Also, which we often see with government, they are slow to react (sometimes mandated by law because of comment periods required) to a situation, and in many instances, new regulations also have many unintended consequences.

But 90% of the people on here always look to the government when their is a problem...real or perceived...and that is when the political theatre starts....and when you see two people like Cruz and AOC agreeing on something, that should speak volumes.