Hey stock traders & investors, we felt it was essential for us to have a small “fireside” talk and remind everyone of our rules regarding meme stocks, penny stocks, and crypto.
Currently, we are receiving a lot of reports, and mod mails around “meme” stocks and crypto, and we want to clear the air here.
Lately, we're seeing more & more posts regarding meme stocks. We define meme stocks as a stock that has a significant following (like a cult) from a non-traditional trader; attracts considerable social media attention surrounding the stock; cult members follow mentions and brigade by sharing mass links upvote regardless of the quality; thread jacking every post and spamming the meme stock so no other stock can be discussed.
The main goal of the cult for any meme stock is to pump the price.
These are different from penny stocks which we class as stocks that have traded less than $5 / share over the last six months or have a market cap of less than $300m.
But penny stocks share something in common with meme stocks: The pump in price. However, they go through extreme pump & dump campaigns continually losing value making them “cheap” and where you encourage others to buy 100s of 1000s of shares thinking “cheap” is a good deal but the penny stock promoter sells their shares at the top of the pump, then repeats at a lower price convincing you to buy another round of 100s of 1000s of shares, either through group chats, spamming social media, or forums like these; it is illegal and will not be tolerated and you will face a ban.
Crypto: We do not have any plans to allow crypto or NFT talk here that are unrelated to stocks. This subreddit is for stocks only. We will keep expanding crypto-related stocks like COIN if those discussions are related to the quantitative, fundamental, and technical aspects of said stock such as price movements, cashflow, C-staff changes such as CEO replacements, earnings reports, product changes that will affect the stock price, etc.
Crypto specific or NFT specific posts will not be permitted and the mods will remove those posts. Repeat offenders will be banned.
We are aware that GME is pushing for an NFT store; GME has sales of $6B TTM so if the NFT store makes, let's say, less than 5% of the $6B sales ($300m TTM) we'll consider it crypto spam/shilling and remove it; NFT hype for stocks is going to be considered crypto shilling.
Our best examples of meme stocks are AMC & GME, see the wiki below how we determined meme stocks in depth, but we all know GME is a meme and has several cults on Reddit. If you want to spam about GME then you can do that on other sub reddit, see the links and wikis below.
We actually allow discussions on meme stocks. However, we need to ensure that we do not become simply a meme stock sub drowning in a flood of posts discussing the same exact stock every day, and to do that, we implemented some protocols we set up in 2020 when the meme stock mania took hold:
* We will limit the number of posts that are submitted to r/stocks that are around meme stocks.
* They must be high quality and based upon verifiable data.
* News must come from a mainstream news broadcaster that focuses on stocks (for example, we will permit the Financial times, CNBC etc. but not Fox, BBC etc.).
* Automod will remove Twitter or youtube posts. Automod will police this, and the method it decides what is low effort or not will change dynamically to deal with the volume of mentions of said meme stock.
* We will not permit any conspiracy theories at all. There needs to be evidence and grounded.
* While we have a criteria for meme stocks (see wiki below), the mods will have full discretion at all times. Simply posting the meme stock ticker and nothing else or similar low effort comments will be removed, and circumventing automod or another mod will result in a ban.
* And with the help of the r/stocks community, whenever someone uses the report button to identify shilling, it helps the mod team focus their efforts on actual shilling and spam; thanks!
The users of r/stocks don't want to discuss the same exact stock multiple times a day, every single day, and we don't want to be shilled to.
We're desperately trying to warn the community of the manipulation that's going on here just to get you to pour your money into these types of things so that they can sell at a higher price and you're left holding the bag with no one to sell to. That's not how you build wealth in the long term with stocks.
See our wiki on meme stocks and our wiki on crypto and please post to r/superstonk for GME fun/speculation/rumors/conspiracies and r/cryptocurrencies or r/cryptocurrency for crypto/NFTs, and see our main wiki for all the related financial subs (or non financial subs like politics) (at the bottom).
TLDR: We require meme stocks to be high effort posts + comments, and we will continue to push back against the flood of posts to ensure we don't become overtaken by meme stocks or crypto shilling.
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