In the late 90’s the internet went crazy. All these new millionaires with stock options didn’t want to sell because they had to do paperwork and it looked bad that they were selling. Some schmuck came up with an idea to create an “exchange” to trade the new shares they had acquired in exchange for shares of the exchange. They would borrow money against the shares and diversify everyone. One problem they used options to diversify and lost millions and the options were cut off. They then had problems hedging everything without the options. Serves them all right for not wanting to do the right thing and take a little profit. Some big names were involved. Here is a little more about the story

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