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Explain the stock situation+the corruption like I’m five
Posted on 1/28/21 at 8:44 pm
Posted on 1/28/21 at 8:44 pm
For those of us who have no interest in stocks or don’t understand any of it but want to understand what’s going on.
16
Posted on 1/28/21 at 8:45 pm to FlexDawg
5 year olds can't invest. You are welcome
Posted on 1/28/21 at 8:45 pm to FlexDawg
Try reading a fricking article
Or one of the other 1028365 threads.
Or one of the other 1028365 threads.
Posted on 1/28/21 at 8:45 pm to FlexDawg
The elites dont like getting beat at their own game by the pleabs..
Posted on 1/28/21 at 8:49 pm to FlexDawg
A bunch of Reddit gamers reversed the script on some large hedge fund companies basically running the same strategy that these companies run and costing them billions of dollars. Meanwhile, the stock positions and trading for them were halted which obviously set a double standard for the hedge fund managers and ordinary people.
This post was edited on 1/28/21 at 8:50 pm
Posted on 1/28/21 at 8:54 pm to FlexDawg
Posted on 1/28/21 at 8:56 pm to FlexDawg
Posted on 1/28/21 at 9:00 pm to FlexDawg
If you conspire to short a stock and it doesn’t short, because you don’t actually own the stock (it’s borrowed), you’re in over your head in a hurry. In this situation the hedge fund guys are forced to dip in to their own pockets to cover margins and losses.
The good guys are watching heavily shorted stocks, predicting their selloff points and buying as much as we can. The stock squeeze forces the hedge/shorters to save their asses through buying and these stocks shoot up.
Edited to make it a little more clear.
The good guys are watching heavily shorted stocks, predicting their selloff points and buying as much as we can. The stock squeeze forces the hedge/shorters to save their asses through buying and these stocks shoot up.
Edited to make it a little more clear.
This post was edited on 1/28/21 at 9:28 pm
Posted on 1/28/21 at 9:00 pm to FlexDawg
I’ll buy the Hamburger you just got from McDoo’s off of you for what a hamburger is worth, and in exchange, I’ll buy you a hamburger next week. What I’m doing is betting that the price of a hamburger goes down in the next week, thus I’ve made that much money. I am short-selling you. If it goes up in price, I lose that much money buying you a hamburger. I would be getting ‘squeezed’
So someone short-sold stock of AMC, GameStop and a few others. Reddit board got the word out someone was short selling a YUGE amount, and organized to raise the stock’s prices by continuously buying the stock.
Today, several brokerages just stopped letting people from trading those stocks.
So someone short-sold stock of AMC, GameStop and a few others. Reddit board got the word out someone was short selling a YUGE amount, and organized to raise the stock’s prices by continuously buying the stock.
Today, several brokerages just stopped letting people from trading those stocks.
Posted on 1/28/21 at 9:08 pm to FlexDawg
You see, it's perfectly legal for a hedge fund to use their millions and millions of dollars from the many, many large accounts they manage to manipulate the market as they like (within certain boundaries). They can use the power of those accounts to short a stock (ie: bet that it will go down) and the sheer mass of their portfolios can make that happen.
But... a bunch of people getting together to pool their resources in a communal decision to support a stock by driving its price up against to thwart those hedge funds is apparently frowned upon by the SEC, many of the large brokerage firms and the White House itself.
You see, the Powers That Be do not see the hedge funds and their massive portfolios buying so many shorts that it manipulates the stock lower (thus actually driving the price down) as manipulating the market but they do see lots of lone buyers congregating together to buy a stock in order to raise its price just to frick over a hedge fund's attempts at shorting as bad.
Personally I don't think shorting should have ever been allowed, but that's just me.
But... a bunch of people getting together to pool their resources in a communal decision to support a stock by driving its price up against to thwart those hedge funds is apparently frowned upon by the SEC, many of the large brokerage firms and the White House itself.
You see, the Powers That Be do not see the hedge funds and their massive portfolios buying so many shorts that it manipulates the stock lower (thus actually driving the price down) as manipulating the market but they do see lots of lone buyers congregating together to buy a stock in order to raise its price just to frick over a hedge fund's attempts at shorting as bad.
Personally I don't think shorting should have ever been allowed, but that's just me.
Posted on 1/28/21 at 9:08 pm to GoldenGuy
quote:
I’ll buy the Hamburger you just got from McDoo’s off of you for what a hamburger is worth, and in exchange, I’ll buy you a hamburger next week.
Sweet, I just got a free hamburger. Why would you buy 2 hamburgers and only keep 1?
Posted on 1/28/21 at 9:13 pm to FlexDawg
Congress will eventually pass laws to protect hedge funds and will probably be giving them another bailout soon, just in case the common folk get uppity again. If you vote to re-elect any Congressman who eventually protects these wall street criminals, you're beyond cucked.
Posted on 1/28/21 at 9:14 pm to JG77056
The current price of the hamburger is $10. I have it on good authority that the hamburger will cost $5 next week. I ask to borrow your hamburger and immediately sell it for $10. Next week, I buy another hamburger for $5 and give it to you. You got your hamburger back, and I made $5.
Posted on 1/28/21 at 9:15 pm to FlexDawg
Elites didnt think modern day comfy slaves would actually play in their casino being that we're focused on trying to live and "too stupid" to play anyhow. They also figured the sleeping sheep would supress the black sheep and fight eachother which wouldnt give us a chance to play their game....so they thought. Now they're pissed we went against all that and played their game that we were told we could do(a lie being proven as one today) and are going to retaliate in some way most likely...so...hopefully the black sheeps got a plan! Or this is gonna hurt.
Posted on 1/28/21 at 9:16 pm to FlexDawg
If I borrowed your car for 10 dollars and the next week it goes down in value and you only pay 5 to get it back you shortchanged me but got an increased in your pay of 5 dollars plus car back.
Posted on 1/28/21 at 9:17 pm to hendersonshands
He didn’t say he was borrowing the hamburger, he said he was buying it from me at market price for hamburgers, then on top of that he was gonna buy me a hamburger next week.
Posted on 1/28/21 at 9:17 pm to JG77056
quote:
Sweet, I just got a free hamburger. Why would you buy 2 hamburgers and only keep 1?
Because he knows the politicians he owns will bail him out.
Posted on 1/28/21 at 9:19 pm to JG77056
quote:
He didn’t say he was borrowing the hamburger, he said he was buying it from me at market price for hamburgers, then on top of that he was gonna buy me a hamburger next week.
Ah ok, I didn't read carefully. Got distracted thinking about hamburgers.
Posted on 1/28/21 at 9:22 pm to FlexDawg
Posted on 1/28/21 at 9:49 pm to lsutigermall
quote:Not exactly.
If you conspire to short a stock and it doesn’t short, because you don’t actually own the stock (it’s borrowed),
Shorts are inherently borrowed.
Hedge funds used short sales because they believed the share price would go down (or wanted to drive it down).
The problem is that these hedge funds had more short sales than there were actual real shares available.
So wallstreetbets bought up shares driving share price up and will force hedge funds to cover...which could potentially be infinite (loses on short sales could theoretically go to infinity).
:strip_icc():format(webp)/the-basics-of-shorting-stock-356327-v2-5bc4c22346e0fb0026b436d3.png)
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