In the old days of my early investment career, a retail investor's game was to try to spot the promising new companies, with sound science and promising ideas to develop and get in early while it was still cheap. The normal expectation was that as the good news kept coming, the stock would continue to climb based on these expectations. The risk was in making the wrong choice with a company whose expectations did not pan out. Good news then continue to climb, bad news - well that's the risk you took with these risky investments. But going DOWN on good news (especially in a big way like May 10) was not expected, and retail investors had confidence in the market and felt they had a shot at winning if their research was good.
This was important for these young developing companies. It meant they had a dependable source of funding from this retail investor market. They just had to convince the investors they had the real deal and were not selling snake oil - which if they really had sound science and good research was not hard for them to do. This was the foundation of the ability of young companies, with new ideas and technologies to get funded and eventually bring their products to market. This used to be investing 101. This is what made the US the number one source of new development and technology in the WORLD.
The SEC is now allowing this system to be hijacked by the MMs and hedge funds and shorts etc, and turning this whole market on its head. It is now a very uneven playing field. The rules and regulations are all being played by the MMs et al. And those regs that are on the books are not being adequately enforced. And when they do catch someone with egregious offenses they get off with a mere slap on the wrists, and pay the fines as part of the cost of doing business. The fact pattern of an NWBO should not be able to exist. NWBO is the poster boy for this situation. Imagine if the MMs were to win and force NWBO (can't happen anymore - but imagine) to close its doors. Imagine the tremendous loss to the millions suffering from cancer - all to the gain of a few who are able to manipulate the market to their benefit and due to the weak and lackadaisical oversight. Imagine the loss to the world of all the small companies with promising technology that were never allowed to make it to the market and of which you never even heard!
Congress needs to revamp the laws to maintain the US position as the foremost place to develop new and promising technology. This is seriously at risk without prompt serious action with teeth by congress - not just a band aid change to a couple of regs just for show. The SEC needs to be an effective regulator who has the tools it needs AND THE WILL to really regulate!
