How is an XIV lawsuit even possible?

Discussion in 'Wall St. News' started by prc117f, Feb 8, 2018.

  1. gkishot


    SVXY is tracking the same index. Why didn't it get liquidated? As far as I am concerned, the product which has to be liquidated due to market conditions is flawed from the start. The issuer should have known better to manage the risk. After all, they were receiving fees from investors.
    Last edited: Feb 8, 2018
    #11     Feb 8, 2018
  2. prc117f


    I think a lot of people bought having no idea exactly what they were buying. I read reports of people buying the day before the whole thing went to 6-7 a share thinking it was a good buy on the dip.
    #12     Feb 8, 2018
    d08 likes this.
  3. prc117f


    If a Financial advisor told someone to invest in that fund I can see a valid lawsuit since they are supposed to be looking out for thier clients and making sure they are in suitable investments. XIV not being suitable for anyone who has an advisor telling them how to invest their retirement fund.
    #13     Feb 8, 2018
  4. newdog


    People didn't get paid when due to real fraud housing market blew up. Now you expect to get paid for making bad investment against all warning.

    What do people expect tattoo artist showing up and inking people's forearm?
    #14     Feb 8, 2018
  5. gkishot


    The fund was get paid for a flawed business model. If it was so good, we want it back.
    #15     Feb 8, 2018
  6. Anybody know how to get a link to this lawsuit?
    #16     Feb 8, 2018
  7. gkishot


    LOL! You will possibly get a letter in the mail of class auction lawsuit on behalf of XIV shareholders.
    #17     Feb 8, 2018
  8. Anybody have a link to the lawsuit?
    #18     Feb 8, 2018
  9. ironchef


    Why don't the lawyers sue the counter parties who made out like bandits instead of the fund?
    #19     Feb 8, 2018
  10. Lawyer's are gonna do what they do right? Same idea behind a lotto ticket, if you don't try you can't win.

    I think no claim. Risks outlined in prospectus already. Some people, such as the former CFTC head, are now arguing risks should be in bold letters and bullet points and on the front page in the prospectus, etc. That's just ramblings on regulatory issues. Yes, hundreds of pages is no fun to read, but it's there. Self directed investing means you gotta do the HW yourself. Can't blame people for not reading the hundred pages.

    I also don't think these products should be 'regulated' or 'banned' from the retail investor, barring extreme systemic risks. But if people want to take risks for a reward, they ought to be able to in a free society. As long as you accept the risks, then it's fine. Even if they outlaw these products (not gonna happen), people will find a way to gamble. Buy OTM weekly options hoping for a lotto win. Heck, go to vegas and put it all on black. A gambler's gonna gamble.

    But everyone ought to be afforded the opportunity, not guarantee, but opportunity to succeed by allowing them to take risks for a reward. Gives people a chance to move up in life, although the flip side is digging a deeper hole. Think about it. Maybe you don't have a college degree or working a dead end job making minimum wage. You aspire to be the guy who drives fancy cars and has a McMansion. The market is there and offers this man an opportunity to get out of the cycle. Otherwise, he will forever be stuck at the bottom. These opportunities to take risks for gain should not be closed to people. Most people shouldn't take inordinate risks, but at least allow people an opportunity and venue to try to overtake if they so wish. Liberty.

    Also, many people, and not just XIV but the market in general, have no problems with making money on the way up. But the moment they lose, or the market falls a few percentage points, they make a lot of noise. Maybe they are socialist. Maybe the government should just give everyone a paycheck instead. You only deserve to win, not lose, is what they're telling you.
    Last edited: Feb 8, 2018
    #20     Feb 8, 2018
    d08 and comagnum like this.