Knight Capital made headlines around the world when one of its computers went on a shopping spree that ended up costing the company $440 million. So surely its secrets would come out now.
The Penny Stock Chronicles
A stock analyst spent 10 years obsessively investigating how exactly he came to lose $1 million on one penny stock. A remarkable story ensues.
224 Viewers•1,252 Page flips•6,291 Followers•7 Stories
Photo: theintercept.comMost recent stories in The Penny Stock Chronicles
If your goal is to launder money through a brokerage account, paper losses are worth serious money. Buying imaginary shares of a stock guaranteed to lose value is an awesome way to do that. You just need someone to set it up.
The penny stock Chris DiIorio invested in that crashed and burned was one of many stocks with similar trajectories traded by the same two giant companies. But if one was the buyer and the other the seller, how could this be in both of their interests?
“I was baffled why the SEC was not acting on what appeared to be blatant securities violations.”
Who engages in massive trades in penny stocks on the industry’s own “chill list”?
A self-appointed stock sleuth finds financial giants trading extensively in little penny stocks like the one he owned that tanked. And he learns something amazing: Some brokers can sell shares that don't actually exist.
See more stories
The Penny Stock Chronicles
Magazine
