You can’t explain how they did. Project more 2 week old account
Oversimplified version:
Rich people bet against companies like GameStop, then Reddit bet on GameStop just to ruin the rich peoples’ bets.
More complete answer:
Basically rich investors bet on bad companies (like GameStop) failing. It’s called a “stock short.” The way they “bet” is by borrowing a Gamestock stock from another person, then they sign a contract saying they will give them back the stock later, at a certain date.
How is this a bet? Because if the company loses value the investors win. If the company gains in value the investors lose. Once they borrow the stock (aka a tiny sliver in the ownership of the company) they immediately sell it, then later, because of their contract, they buy the same stock again to give back to the lender.
If the stock goes down during that time they make money. If it goes up they lose money.
So say that you owned one stock of Apple. I could borrow the stock from you and tell you I will give you back an Apple stock at the end of the month. I would then sell it for $100. By the end of the month, say the price of an Apple stock dropped to $1. Then I would just buy an Apple stock for $1 and give you back your one stock. I would bet a $99 profit.
That’s what the big shot investors did. But when Reddit saw that apple’s Gamestock’s stock was dropping, they decided to buy it just to increase its price so the big shot investors would fail. They had to return the stocks to the lenders, they already sold the stocks they were lent, so they had to buy stocks at a high price (thanks to Reddit) to give back to the lenders.
They artificially caused the stock to lose value
No they didn’t
punches self in dick
FREEDOM IS UNCOMFORTABLE!
Your strategy of beating the enemy by punching yourself in the dick sounds great champ. Have fun
Have fun with that. You won’t succeed in doing anything but destroying america.
It’s really edgy and cool to talk about destroying the country on the internet, but in real life you’re just a worthless pain in the ass helping our enemies win because you’re throwing a tantrum.
You just compared a bunch of redditors to the Boston Tea Party.
Embarrassing.
You’re a braindead commie lol
Enjoy “eliminating portions of the economy” that you don’t like. The Bernie Sanders website is that way
You realize this is a site dedicated to a billionaire, you braindead commie?
Targeting someone’s business isn’t the free market dummy
This is in unAmerican and it will eventually destroy the US economy when the biggest investors pull back (congrats China).
You guys are indistinguishable from Bernie Bros and your shortsightedness is embarrassing.
Short selling itself might not be un-American unless of course you collude with a bunch of other crony assholes who conspire to bankrupt and destroy a company to make money off of it while putting 50k people out of jobs.
This isn’t short selling though. It’s collusion. And it’s already illegal.
Bro GameStop is effectively owned by China. There’s nothing wrong with betting against shitty companies.
Remember, Hitler won Time Magazine Person of the Year and the NYTimes defended the Soviet Union until the day it collapsed.
This shouldn’t surprise you. These lefty awards have always been propaganda. It’s just evil people celebrating their evil to make themselves seem less evil.
“Taking down the entire party” sounds really edgy. But it makes absolutely no sense once you realize the GOP is the only thing standing between Demsocs and absolute power.
The GOP is still Trump’s party. Just because everyone in the GOP isn’t on the same page as Trump doesn’t mean he doesn’t control the party. We just need to cut some of the snakes out.
use your insane leverage as a hedge fund to short sell a company into bankruptcy because it makes you rich
Hedge funds don’t force companies into bankruptcy. All they do is bet on shitty companies going bankrupt. They don’t do anything to prevent the company from succeeding on its own merits, other than make it known that they think the company is shitty.
I never said they should be bailed out for over investing in shorts. But there’s absolutely nothing immoral about shorts. This is stupid commie logic where you assume someone’s economic misfortunes are always due to someone else “exploiting” them.
The “1%” is dumb commie propaganda and you’re likely a shill, handshake account
The hedge funds should not be bailed out.
But if you honestly can’t see the problem with normalizing internet mobs that purposefully fuck up certain people’s investments you’re an idiot.
If this becomes the norm it will crash the economy. The biggest investors will stop investing. That’s how depressions begin.
herp derp that sounds great burn it all down
No moron. Crashing the economy = more socialism. This is what Biden and China want.
Youre cheering on the destruction of the US stock market for no other reason than misguided revenge and rage.You’re blindly lashing out at these hedge funds just because they are rich.
Many hedge fund managers are dicks, greedy assholes, and never trumpers. That still doesn’t mean they should be targeted as a whole by internet mobs. If this kind of stuff keeps up the stock market is going to tank, because the value of stocks is going to be completely detached from their real value. This is bad for all Americans and good for China.
Ignoring all this and just saying “fuck the rich” is the epitome of jealous nihilism
There’s a Libertardian somewhere right now explaining why he still doesn’t regret voting for Biden/Jorgensen because of Trump’s mean tweets
I just checked Webster’s dictionary and apparently it’s been redefined to over “two rounds”
Yeah little petty tyrants like you telling me how I can spend my money while invoking “America” definitely strikes a nerve. Last time I checked a “free market” means I can bet against a company whenever/however the fuck I want to.
Why don’t you stop beating around the bush and actually explain what’s so “unAmerican” about short selling.
It’s truly embarrassing. Nobody upvoting this garbage can even tell you what a “short” is - but they’re all convinced it’s evil because.... [insert occupy wallstreet talking point]
If this site just falls for every stupid leftist trend coming from Antifa-type dipshits on Reddit then what’s the point of the site again?
The system isn’t rigged you’re just a loser