Are we finally gonna see a 9a2 test case?
Jan. 28th, 2021 05:47 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
walkitout“Notwithstanding these few cases, the overall historical record shows that § 9(a)(2) has played only a minimal role in the development of manipulation jurisprudence in securities law, despite the obvious relevance of its language. The principal reason is that, until 2010, § 9(a)(2) was only applicable to alleged manipulations involving exchange traded securities. This made it inapplicable
to most open market manipulations for two reasons. First, stocks that trade on exchanges tend to be traded in large volume and be highly liquid, whereas open market manipulation is much more likely to move price significantly with more thinly traded over-the-counter stocks. So, for most of § 9(a)(2)'s history, the lower float, lower volume securities most likely to be the victim of a market manipulation were outside its reach." 7”
From: https://repository.law.umich.edu/cgi/viewcontent.cgi?article=2978&context=articles&fbclid=IwAR3a_AFbTFIX-hlVcX-rYPCDfWpcRYT8uGnk_Jw1YTweBsuO9HXHwJvFTus
This is really amazing! I think Wall Street Bets has broken 9a2! For reals! Motive is apparent! And it would have been illegal _before_ the exchange traded requirement. This is so weeeeiiiiiirrrd. The actually impossible thing has happened!
So, you know, all those people who said we did not need the law because it was self-enforcing were actually wrong.
to most open market manipulations for two reasons. First, stocks that trade on exchanges tend to be traded in large volume and be highly liquid, whereas open market manipulation is much more likely to move price significantly with more thinly traded over-the-counter stocks. So, for most of § 9(a)(2)'s history, the lower float, lower volume securities most likely to be the victim of a market manipulation were outside its reach." 7”
From: https://repository.law.umich.edu/cgi/viewcontent.cgi?article=2978&context=articles&fbclid=IwAR3a_AFbTFIX-hlVcX-rYPCDfWpcRYT8uGnk_Jw1YTweBsuO9HXHwJvFTus
This is really amazing! I think Wall Street Bets has broken 9a2! For reals! Motive is apparent! And it would have been illegal _before_ the exchange traded requirement. This is so weeeeiiiiiirrrd. The actually impossible thing has happened!
So, you know, all those people who said we did not need the law because it was self-enforcing were actually wrong.