-
• #1752
Can someone explain to an 8 year old (that's my fiscal brain age) what all this is about? Shit's popping up about this on twitter and I'm curious but don't have time to investigate what this lot are doing.
-
• #1754
Seconded. Does a great job explaining it – especially 'dicks in cookie jars' etc.
-
• #1755
Thanks both. Will do.
-
• #1756
In the video is '100% of the available shares' referring to the average number of shares being traded daily?
-
• #1757
No, it's more than what's available in the market. That's why they're so fucked. And why they deserve it.
-
• #1758
Excuse my simplistic view on things but how can a broker offer the option on shares they don't have?
Surely they can only 'lend' shares that exist?
-
• #1760
thanks
-
• #1761
Because shares keep getting borrowed and sold on, without any physical exchange occurring (I think). I've been reading about this for a few days and am only just starting to grasp the actual technicalities. But a lot of people think it should be illegal to exceed the total share float, and after this, I think a lot of people will agree.
-
• #1762
Is there anyway this could fail for the WSB crew or is it pretty locked in that they’ll get some (potentially huge) return from the whole thing?
-
• #1763
For those buying in now at $200+, it could go very badly.
But WSB know they have these funds by the balls, so as long as they collectively hold their nerve, the short sellers are going to run out of liquidity first.
-
• #1764
As in most situations in life, for the people pulling the strings and their immediate followers, it's likely they will make a killing.
And a load of people who joined the scheme too late will lose some money. Maybe a lot, maybe a small amount.
Up to you to decide if there's some epic moral battle at play here.
-
• #1765
Thanks for the answers. It's all very interesting. I wonder how long they can convince everyone to hold for.
-
• #1766
US markets open at 2:30pm. Going to be interesting!
-
• #1767
a fund that is so large it crushes a stock
They identified a stock that was, in their view, over valued. And they made a big bet that the value of the stock would decrease towards the 'real' value. They aren't looking to 'crush' it although that might be the outcome. It certainly will be now. It's arguable that the GME business was worth nothing.
But if the stock gets crushed, so what? Stocks are not sentient beings - there is not an inherent morality in 'saving' them, and delivering what could amount to a Coup de grâce isn't inherently immoral if the stock is dying . There is only so much value and it's better that value finds the right places sooner rather than later.
Heh I am so fucking reductionist.
-
• #1768
You'd need to be mental to buy in at that price now, once something gets to the stage where its public you've missed the boat.
-
• #1769
there is definitely the chance of an imminent rug-pull
but could also go to 1000s...
-
• #1770
Is there any possibility of knock on effects (immediate or long term) on the rest of the stock market?
-
• #1771
How badly hit will these hedge funds be? (i know little about this works apart from watching the video on a previous page. The majority new has to be redditors / short sellers so if they collectively hold the price could sky rocket yes?
-
• #1772
*> But if the stock gets crushed, so what? Stocks are not sentient beings
- there is not an inherent morality in 'saving' them, and delivering what could amount to a Coup de grâce isn't inherently immoral if the
stock is dying .*
This is the point. The company was solvent, and had more cash than debt at the start of this whole thing. Why should a solvent company have to fold (and all their employees lose jobs) just because a hedge fund decided they were doomed and got greedy?
Edit: no idea what happened to the formatting there...
- there is not an inherent morality in 'saving' them, and delivering what could amount to a Coup de grâce isn't inherently immoral if the
-
• #1773
Dunno - could've bought on Friday and sell today
I saw people making paper money of 000's yesterday alone
-
• #1774
It's worth remembering that most of us rely on fund managers to earn money with our pension funds so that we can retire. So this WSB effort is taking money from ordinary working folks and giving it to a few hot-heads.
-
• #1775
dicks in cookie jars
Made me lol
No its not.
This is true market manipulation - a fund that is so large it crushes a stock, ultimately paying itself is market manipulation and so this comeuppance is well deserved.