This post has been de-listed
It is no longer included in search results and normal feeds (front page, hot posts, subreddit posts, etc). It remains visible only via the author's post history.
Hi friends, I'm the
"HEY ALL ORDERS ARE ROUTED TO THE OTC MARKET, WALL STREET IS MANIPULATED" guy!
But do you know what OTC markets are?
&
Do you know why OTC markets are not a safe place to invest?
Investing in OTC (Over-The-Counter) markets may seem attractive to many investors looking for opportunities outside of traditional exchanges. However, there are several reasons why OTC markets do not represent a safe investment environment:
Lack of Regulation: OTC markets are less regulated than traditional stock markets. This means that OTC listed companies are not required to provide the same level of financial and operational transparency, increasing the risk of fraud or incomplete information.
Higher Risk of Market Manipulation: Poor regulation and low liquidity make OTC markets vulnerable to price manipulation. Less experienced investors can fall victim to schemes such as "pump and dump" or "spoofing", where prices are artificially inflated and then quickly collapse.
PUMP AND DUMP https://en.wikipedia.org/wiki/Pump_and_dump
SPOOFING https://en.wikipedia.org/wiki/Spoofing_(finance))
Limited Information: Companies listed on OTC markets are often not required to comply with the same financial reporting standards as companies listed on regulated markets. This means that investors may have access to limited or inaccurate information, making it difficult to assess a company's true financial health and future prospects.
High Risk and Volatility: OTC securities are generally considered high risk, with high volatility that can lead to quick gains but also substantial losses. This makes them unsuitable for investors seeking stability or long-term sustainable growth.
Price Manipulation in OTC Markets by Market Makers
In OTC (Over-The-Counter) markets, one of the main concerns is price manipulation by Market Makers. These actors, who facilitate buying and selling operations, have a crucial role in determining the price of shares in OTC markets, but also the power to manipulate them at will. Here's how and why this can happen:
Order Routing: In regulated markets, orders are executed through transparent mechanisms and supervised by regulatory authorities. In OTC markets, however, orders can be routed directly to Market Makers, who have control over the price at which transactions are executed. This gives them the ability to manipulate prices to take advantage.
Wide Spreads and Opacity: Market Makers in OTC markets can set very wide spreads (the difference between the buy price and the sell price), taking advantage of the lack of competition and transparency. This not only makes transactions more expensive for investors, but also allows Market Makers to influence prices for their own benefit.
Price Manipulation: Thanks to their direct control over orders, Market Makers can manipulate prices through practices such as "spoofing" (placing fake orders to influence the price) or "layering" (placing multiple orders to create the illusion of market activity). These practices create an artificial price that can push investors to buy or sell at unrealistic prices.
Risk of Fraudulent Schemes: In OTC markets, Market Makers may be involved in fraudulent schemes such as "pump and dump". Here, the price of a stock is artificially pushed up with coordinated purchases, only to be sold en masse, leaving investors with huge losses when the price collapses.
Lack of Regulatory Oversight: The absence of rigorous oversight in the OTC markets makes it difficult to detect and punish bad behavior by Market Makers. This less regulated environment fosters manipulative practices that can harm investors.
These dynamics make OTC markets particularly risky, especially for less experienced investors who may not be able to identify or react promptly to Market Maker manipulations.
CONCLUSION: WALL STREET IS NOT A TRANSPARENT AND SAFE MARKET, EVERY SECURITY IS MANIPULATED ACCORDING TO THE INTERESTS OF FUNDS AND INSTITUTIONS, EVERY FUNDAMENTAL PRINCIPLE OF FINANCE TODAY HAS GONE TO STUFF, THE INTRINSIC VALUE OF COMPANIES IS NO LONGER WORTH NOTHING. WALL STREET IS NO LONGER A SAFE PLACE AND GAMESTOP IS BRINGING ALL THIS OUT IN THE SUN. AMERICAN FRIENDS, DO SOMETHING, THERE ARE MANY OF US AND WE NEED TO CHANGE THIS SHIT.
Subreddit
Post Details
- Posted
- 2 months ago
- Reddit URL
- View post on reddit.com
- External URL
- reddit.com/r/GME/comment...