How Helikon work their disgracful operation & are allowed to get away with it by the FCA.19 Dec 2024 21:56
First they borrow say 1 million shares from the broker, agreeing to pay them back on a certain date. Now as soon as they've borrowed them they sell the shares on the market. This causes the share price to fall & panic other investors such as ordinary shareholders to panic & also sell. So then the price drops even further & this is how they make their profit.
Example
They borrow 1 million shares & sell them straight away for 20p. This causes the price to drop to say 18p, then other ordinary shareholders panic & sell, causing the price to drop again to say 16p.
So they sold 1:million at 20p = £200,000.
When the price as dropped to 16p they buy them back at 16p., 1 million shares at 16p = £160,000..
They then hand the 1 million shares back to the broker on the agreed date & pocket the £40,000 profit.
So don't let them manipulate you, keep your shares & don't panic & sell. This is playing into their hands & spreading the panic for no reason at all . The more people panic & sell the more they make.
This should be illegal, for the simple reason they didn't even own the shares to start with.
Email the Finacial services authority & register a complaint about this ridicules unfair practice.