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Pastimes : Jonathan Lebed, 14 Year Old Boy Fined 1/4 Million by SEC

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To: donjuan_demarco who wrote (112)9/23/2000 7:42:20 AM
From: donjuan_demarco  Read Replies (1) of 172
 
Another problem I have with this is the emphasis on whether the kid sold into the hype he created. To me, this is irrevelant.

Let's say that journalist John Doe writes an article predicting that XYZ, currently trading at $15, will go up by 10,000%. Based on this article, XYZ spikes to $90, and then drops back to $20.

Clearly the people who bought high suffered a great loss. Does it matter whether John Doe sold into the spike? The damaged suffered is the same either way.
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