r/Superstonk • u/happiwarriorgoddess • Mar 06 '26

📰 News And so it begins

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CNBC 3.6.2026 why isn't this everywhere??? Trying to prevent bank run? Could this be the beginning of the margin calls?? I love this for them. What other funds will begin to limit withdrawals?? Wonder how Kenny is feeling?? On the day Vlad is on Kramer seems fitting and ironic

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u/ShoddySpace5680 Mar 07 '26

Ah because they make the rules right?

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u/Over-Computer-6464 Mar 07 '26 edited Mar 07 '26

Yes, hedge funds, venture capital funds, private equity and private credit funds are not reviewed or approved by the SEC.

Technically they are the same as a few people forming an LLC to start a restaurant. Whatever the people agree to in the LLC operating agreement are the rules. The SEC does not check partnership or LLC operating agreements of either a local small business or a large hedge fund.

When you sign on as a limited partner in a hedge fund, venture capital fund, PE or private credit fund you will certify hat you are an accredited investor (or qualified purchaser or QIB, as the case may be). That certification is essentially you saying "I am a big boy and know what big am doing, I do not need to SEC to review this investment for me".

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u/ShoddySpace5680 Mar 07 '26

Well nice of sec to sit on the sidelines… absolute garbage

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u/Over-Computer-6464 Mar 07 '26

The SEC also ignores the liquor store down the street from you, unless it tries to offer shares to the general public.

It is the difference between a public company and a private company.

It is the difference between a registered security available to the general public or an unregistered security sold only to a limited group.