Hedge fund believes gamestop gonna die. Bet so so big on it hoping no one would notice. Autists notice. Autists see that hedge fund has promises to buy an impossible large number of shares soon.
Autists sees opportunity. People who want to participate, only have to buy shares like a normal person. That's it.
In exchange for doing this, they'll cause an overextended hedge fund to implode into dust and entirely transfer the wealth they used to have to these plucky protagonists. Some may end up buying too high and selling too low; that's a risk they'll have to take. But no one is leaving until the overextended hedge fund is a desicated monument to cynical greed.
A shorted stock is borrowed and not paid for yet by the hedge fund. The hedge fund was betting it was going to tank, and make a profit on it tanking. Instead, people found out that the hedge funds shorted the stock more than 100%, and the more the stock goes up, the more money the hedge fund will lose, because since they borrowed the stock and haven't paid for it yet, they'll have to pay it back at current stock price. This move could possibly bankrupt wall street. Latest I saw they're already down billions because of this.
they borrow the stock when it is higher and sell it. since the stock is borrowed from the owner, they need to give the same stock back to the owner.
that is what a short sale is about.
for example,
borrow 1 stock and sell it for 100, now buy the same stock for 40 and give the stock back to the owner. The person made 60 dollars thru this action since they sold it higher than they bought to replace it.
in this case, others bought the stock raising the price, the short sale person still has to replace the borrowed stock so they are forced to buy it also at the higher price and lose money.
Hedgefund big corp shorts stock on GME (gamestop), people on reddit and other forums organize and purchase stocks driving the stock price up, ruining the profits for Hedgefund big corp edit: losses are massive for Hedgefun big corp, Biden 'looking into it'
Other people have commented, but this guy destroyed a CNBC host on the matter- explaining that hedge funds were selling more stock than even exists for GME. However, this guy's interview was interesting to hear him talk about the background for hedge funds, 2007/2008 collapse, and how individuals get screwed targeted while hedge funds are allowed to do what they please.
I feel stupid because I have no idea what is going on with this one. Can someone simplify this?
Hedge fund believes gamestop gonna die. Bet so so big on it hoping no one would notice. Autists notice. Autists see that hedge fund has promises to buy an impossible large number of shares soon.
Autists sees opportunity. People who want to participate, only have to buy shares like a normal person. That's it. In exchange for doing this, they'll cause an overextended hedge fund to implode into dust and entirely transfer the wealth they used to have to these plucky protagonists. Some may end up buying too high and selling too low; that's a risk they'll have to take. But no one is leaving until the overextended hedge fund is a desicated monument to cynical greed.
A shorted stock is borrowed and not paid for yet by the hedge fund. The hedge fund was betting it was going to tank, and make a profit on it tanking. Instead, people found out that the hedge funds shorted the stock more than 100%, and the more the stock goes up, the more money the hedge fund will lose, because since they borrowed the stock and haven't paid for it yet, they'll have to pay it back at current stock price. This move could possibly bankrupt wall street. Latest I saw they're already down billions because of this.
Can you explain the part on how someone makes a profit on a stock tanking
they borrow the stock when it is higher and sell it. since the stock is borrowed from the owner, they need to give the same stock back to the owner. that is what a short sale is about.
for example, borrow 1 stock and sell it for 100, now buy the same stock for 40 and give the stock back to the owner. The person made 60 dollars thru this action since they sold it higher than they bought to replace it.
in this case, others bought the stock raising the price, the short sale person still has to replace the borrowed stock so they are forced to buy it also at the higher price and lose money.
Will they be protected if they have three or more masks on?
Because they pay back the borrowed stock at a lower price.
Hedgefund big corp shorts stock on GME (gamestop), people on reddit and other forums organize and purchase stocks driving the stock price up, ruining the profits for Hedgefund big corp edit: losses are massive for Hedgefun big corp, Biden 'looking into it'
https://youtu.be/ynhQcu8x1fw
https://www.youtube.com/watch?v=036bv0zsIxY
Other people have commented, but this guy destroyed a CNBC host on the matter- explaining that hedge funds were selling more stock than even exists for GME. However, this guy's interview was interesting to hear him talk about the background for hedge funds, 2007/2008 collapse, and how individuals get screwed targeted while hedge funds are allowed to do what they please.