• Stock Market Reddit's 'Revolution' on GameStop Shakes Wall Street's Foundations

  • GameStop case What happens if an operation like WallStreetBets is organized in Spain?

The stock market earthquake caused for days on Wall Street by the

GameStop

case

continues to leave aftershocks in world markets.

The last one could have taken place in Spain, taking into account the behavior of

Tubacex

shares

this Monday.

The company has soared 15% during the session after a group of private investors organized on

Telegram

shared information about the company and encouraged a joint purchase action.

The spectacular rise began at the edge of 11 in the morning, when the shares jumped from 1.31 euros to 1.51 euros, although the rise has been moderating during the afternoon until closing at 11.6% and 1.48 euros.

This movement is one of many that are being registered around the world around small capitalization values ​​by some investor profiles that seek to replicate the strategy of WallStreetBets foreros in the US.

This group of individual investors encouraged the massive purchase of shares of the GameStop chain, whose financial situation is compromised, to prevent the large funds from taking advantage of their fall with their bearish positions.

The strategy has soared GameStop stocks more than 1,600% and caused multimillion-dollar losses to the funds themselves.

In addition, investors have targeted other companies that are also in decline, such as the cinema chain

AMC

or the maker of

BlackBerry

phones

, which have also been accumulating vertigo rises for days.

In Spain, last week a group of investors tried to promote

a similar maneuver on Prisa's shares

through

Forocoches

, although the forum itself stopped the attempt, and this Monday the target was Tubacex.

Sanctions

Given the possibility of replications of these strategies, the National Securities Market Commission (CNMV) warned last week that "if in Spain someone wanted to do something similar to what happened in the United States, only the attempt to place the value of a action in artificial values, up or down, would constitute market manipulation. "

The possible penalties are high.

According to the EU regulation, "the mere attempt to place the value of a share at artificial levels, and of course even more if it is successful, individually or in a coordinated way, be it up or down,

would constitute market manipulation.

".

The administrative sanctions for market manipulation are included in article 302 TRLMV and in the case of the fine it

can reach up to 30,000,000 euros.

In

criminal proceedings

, the crime of market manipulation (article 284 CP) is punishable by

imprisonment from six months to six years

, a fine of two to five years, or three times the profit obtained or favored, or the damages avoided, if the resulting amount were higher, and special disqualification to intervene in the financial market as an actor, agent or mediator or informant for a period of two to five years.

According to the criteria of The Trust Project

Know more

  • economy

Markets: Banks drive the biggest rise in the Ibex 35 in two months with an advance of 3.2%

Q & A Why did Berkeley choose Spain after Brexit and what other companies could bring their stock exchange here?

PodcastWhere to Invest in 2021 and How to Organize the Best Possible Portfolio

See links of interest

  • Messi contract

  • Holidays 2021

  • VfL Wolfsburg - Sport-Club Freiburg

  • Napoli - Parma

  • Mirandés - Las Palmas

  • Granada CF - Celta de Vigo

  • Barcelona - Athletic Club