What did Cramer do to have the SEC restrict his trading???
- Thread starter jay90210
- Start date
cramer is an egomaniac. he would drop anything to be in the spotlight.
I think Cramer is about being a personality, not a trader. It's possible he makes less money by not trading, but that's okay because he has a television show that strokes his ego. I would have to think he makes quite a bit having a television show, authoring books, and just being an all-around "personality." He owns a big chunk of TheStreet.com, and probably receives payments for putting his name all over stuff there -- on top of the equity stake.
I took a free month subscription to his trading alerts and he kept adding to losing position because the stocks were now a "better deal." Kind of the old Boiler Room movie telemarketing pitch. Most traders tend to cut their losses instead of adding to losing positions.
I took a free month subscription to his trading alerts and he kept adding to losing position because the stocks were now a "better deal." Kind of the old Boiler Room movie telemarketing pitch. Most traders tend to cut their losses instead of adding to losing positions.
what's Cramer's story. i heard he went from living out of his car to a net worth of 10's of millions. is this true? is his a rags to riches story?
The simple answer is that Under Section 9(a)(2) of the Federal Securities Act of 1934:
"It shall be unlawful for any person, directly or indirectly, by the use of the mails or any means or instrumentality of interstate commerce, or of any facility of any national securities exchange, or for any member of a national securities exchange -- To effect, alone or with one or more other persons, a series of transactions in any security registered on a national securities exchange or in connection with any security-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act) with respect to such security creating actual or apparent active trading in such security, or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others."
In short, if Cramer trades a security, and immediately thereafter recommends that others buy or sell it with him using an instrument of interstate commerce (i.e., a television broadcast), and as a consequence, the security moves to Cramer's advantage, such that he can exit his position with a profit, at the expense of other traders who followed him, Cramer violates the above-stated Federal statute, because his act of recommending the security has caused actual active trading in the security and induced the purchase of that security to the disadvantage of others.
So, by Cramer delaying his trades for a significant period of time after he announces his intent to trade, he cannot be accused of manipulating the market to his advantage, because he is the last one in and the last one out.
100s
that's awesome! how can anyone not respect a guy like this? he must be a remarkable man.
cramer may not be the best stock picker in america but he is the most powerful stock guru in the world at this time.
