In the mainstream media, the tale of small-time investors banding together to boost garbage stocks that hedge funds were short selling played like David defeating Goliath, the “democratization of investing” and other similarly hyperbolic glorifications.
In the compliance world, we know better. While it’s fun to cheer on the little guy sticking it to the stuffed shirts on Wall Street, in the end this story is really going to be about managing risk—and the disastrous consequences that will come if you fail to do so.
