The $105 Billion ‘Ghost Stock' Blunder Rocking Markets in Korea

Discussion in 'Wall St. News' started by ajacobson, Apr 13, 2018.

  1. ajacobson

    ajacobson

  2. luisHK

    luisHK

    Talk about high dividends stocks, 1000 shares for each share owned !

    looks like huge losses for samsung securities, including loss of future business, and a mess to compensate investors.
    Surprised the chart the doesn't look worse, it seems the market is not panicking.

    https://www.bloomberg.com/quote/016360:KS
     
  3. JackRab

    JackRab

    Jeez...

    What I don't get is how quickly are those deposited? I mean... how can employees dump the stock so quickly? Settlement takes a while... 1 or 2 days at least.

    Those 16 people dumping the stock surely will get shown the door... or they've sold stock they didn't own yet so they might still be short a shitload... I guess the brokerage would in the end be on the hook for that anyway.
     
  4. JackRab

    JackRab

    The stock is down about 10% from last Friday... but depending on the final tally it doesn't seem to bad...

    Market cap of Samsung Sec is about 3 bln... I guess Samsung Elec would put some money down to cover if shit hits the fan....
     
  5. luisHK

    luisHK

    Indeed, I tried to link the 1 month chart from Bloomberg, didn't quite work out. Not too bad considering the OP article from Bloomberg.
     
  6. JackRab

    JackRab

    Those employees should be fired on the basis of

    a. being idiots who should have know better
    b. short selling own firm
    c. dumping stock causing market instability
     
  7. zdreg

    zdreg

    what is wrong in short selling your own firm if it is not based on inside info.?
     
  8. JackRab

    JackRab

    I wouldn't have anyone working for me who is short selling their own firm. It's either inside info, and if not... they don't believe in it... but they are willing to take the pay-check at the end of the week and half-heartedly do their 'job'.

    If I have a short interest in my own firm... that wouldn't really give me an incentive to do my best does it? Maybe better to create some shit rumors, some skeletons in a closet in South America... create a false idea about the firms execs...

    Would you really want that person to work for you?

    These employees at Samsung Securities knew that there was a mistake in the transfer... they were doing something wrong. And they caused further damage to the firm.