images/theme/quote.png") 0.1em 0.1em no-repeat rgb(215, 218, 236); border-top: 2px solid rgb(153, 153, 170); border-bottom: 2px solid rgb(153, 153, 170); padding: 1.1em 1.4em; margin: 0.1em 0px 0.3em; overflow: auto;"> How can that be legal
So what you're saying is when you buy debentures of a company, you get the option to purchase shares at a specified amount after a certain amount of time. So basically you can short the amount of shares you will eventually have access to because you will be able to cover at a predetermined price... Crazy.. The ritch get ritcher right ? To me that's horrible and should be banned.
Yes, you understand perfectly.
Why should it be banned? Because you can't do it.
But Echelon and their clients should be prosecuted for shorting prior to the private placement announcement.
That's insider trading and that's against the law.
But in Canada insider trading is rarely prosecuted and if it is, its just a fine which is barely more that the profit on the trade.
Remember, to buy a private placement, you have to be an accredited investor with more than $1 million dollars in financial assets which eliminates most investors.
Yes, the rich have an advantage. That's life.
If you want to have the same odds of winning as a rich person, stay out of the market and buy lottery tickets.