I know very little about stocks or this situation but this tweet tells me I need to know more

Looks like the bad guy in a movie where Cows are endangered and this guy is trying to kill all of them

One thing I'm confused about is why it matters that they shorted it to over 100% of the value. I get that it's s***ty and scummy but why did that fact in particular screw the hedge funds?

What if they had shorted like 75% of the company's value and everyone jacked the price up?

exactly
but this is getting enough attention that im really hoping we'll get some proper regulations on everyone or at least pressure to do so

it would be incredibly bad optics for Biden right now to come out with regulations on regular people and not on hedge funds since this has exposed to a lot of people how much stock trading is gambling and manipulation and the level to which these hedge funds are playing with the market

This guy isn't an authoritative source.

Where'd tf he get those values from?

in theory its a way for companies to raise capital

but even before this and before shkreli I have no idea how you can possibly think it was actually efficiently distributing capital and acting as a funding source

F*** this spy kids villain looking mf

I can quote you multiple studies that show the stock market is not creating efficient allocation of capital and is not tied to economic efficiency and benefit

Show me one.

this isn't true either though capital absolutely generates wealth as well

Thank you.

that about sums it up

Jim Cramer is a smuck.

Yeah, but the stock market is completely detached from reality right now.

the entire country collapsed due to the stock market at one point, we had an entire depression over it that lasted damn near a decade

Buy high, sell low.

This paper has presented a variety of arguments which, though granting the seeming competitivity of the financial market, seriously question the presumption of the optimality of the resource allocations to which it gives rise. The objective of the a***ysis is not to advocate particular government interventions in the financial market. Rather, it is intended to counter the argument that because tbe market appears to be efficient and competitive, intervention would only lower welfare. Tbe quantitative significance of these market failures, and whether selective intervention could or would result in an improved allocation of resources remain moot questions.

google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiLs8zO473uAhX6xjgGHceBAyEQFjAMegQIJhAC&url=https%3A%2F%2Facademiccommons.columbia.edu%2Fdoi%2F10.7916%2FD8BZ6GZD%2Fdownload&usg=AOvVaw2VTH19C7zSGm_ZFGIi3MSu

We show that stock price efficiency is not sufficient for economic efficiency by showing that the model may have another equilibrium in which prices are strong-form efficient, but investment decisions are suboptimal. We also suggest that stock market efficiency is not necessary for investment efficiency

jstor.org/stable/2329517?seq=1

In theory I agree that the stock market should act like this but especially since 08 this has absolutely not been the case and it has genuinely become a bull market thats full of manipulation and moving money around to create value. but that was also happening before 08. it's the classic thing w capitalism where in theory all this stuff should be guiding us towards efficiency but whether its human nature, whether it's the nature of capitalism itself, whether its regulation or a lack of regulation it's not getting us to that point

Chump change to them

i think i might try to cop some amc or nokia

yea and the government response to 08 which I still feel to some extent was needed has essentially given Wall Street a free pass because f*** it if you screw up the government will save your ass. that being said im not entirely on board w this idea of abolishing the stock market because like the other user says in theory it is a vital tool in letting companies raise needed capital

if you get rid of the stock market a lot of this is gonna happen behind closed doors (I know a lot of it already does but it will entirely happen behind closed doors)

eli5?