Tell me if this makes any sense. In his live interview with Zingernation, Anthony Denier says that when you buy a stock, the clearing house has to put up the money and have it be held for 2 business days. He fully admitted that Melvin doesn't have that kind of money, so the clearinghouse knows it will never get paid for it.
But selling is fine because your company (WeBull, Robinhood, TD etc.) just hands over the stock, so no money is tied up. Well how does the seller get paid then? It sounds to me like they want you to sell, but you will never see a penny of it because Melvin can't afford to pay and they will likely just declare bankruptcy or have the government discharge it or some other elite billionaire bullshit and you wlll be left with no stock and no money.
If I have this wrong, someone please correct me.
Thank you
Tell me if this makes any sense. In his live interview with Zingernation, Anthony Denier says that when you buy a stock, the clearing house has to put up the money and have it be held for 2 business days. He fully admitted that Melvin doesn't have that kind of money, so the clearinghouse knows it will never get paid for it. But selling is fine because your company (WeBull, Robinhood, TD etc.) just hands over the stock, so no money is tied up. Well how does the seller get paid then? It sounds to me like they want you to sell, but you will never see a penny of it because Melvin can't afford to pay and they will likely just declare bankruptcy or have the government discharge it or some other elite billionaire bullshit and you wlll be left with no stock and no money.
If I have this wrong, someone please correct me. Thank you