[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

Search:


View post   

>> No.52686355 [View]
File: 20 KB, 128x128, 1660177739133928.png [View same] [iqdb] [saucenao] [google]
52686355

>>52686191
>GME sucks the entire market's liquidity into it.
So? Less shares being traded makes it easier for them to maintain the price (for now) but it also makes the price go up faster on a run-up, and if it goes up they have less control on the upward momentum, especially as more shares become directly registered.
DRS doesn't make it easier to short, it just makes it cheaper to short because there's less shares needed to move the price down, and while the amount of capital it costs to bring the price down may be reduced, they're still not making any money on the underlining. They short it to prevent volatility momentum, not for profit. And as has been discussed ad infinitum, the current price doesn't matter, what matters is the day when they're forced to fulfill their obligations.

Navigation
View posts[+24][+48][+96]