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/biz/ - Business & Finance


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26703839 No.26703839 [Reply] [Original]

What happens when they liquidate all positions?

>> No.26704055

taxpayer money for the poor kike

>> No.26704065

i dont think anybody knows exactly
im sure the kikes will team up in a "fair court of law" to make a (((just))) decision based on (((fundamentals))) to declare the fair price of gamestop shares as $20 and settle the contracts with that (((fair value)))

>> No.26704121

You get to pay for their bailout via your gains taxes.

>> No.26704251

>>26703839
they open the windows at their office or apartments and decided to vacate the building rapidly

>> No.26704272

>>26704121
this probably. The government jews wont let the finance jews lose

>> No.26704305

>>26704121
And thats why its so nice doing it as a foreigner, no matter who wins, America loses.

>> No.26704318

>>26703839
why is everyone shitting the pants over this, its some little gay hedge fund that transfered a couple of billions to reddit and 4chan

>> No.26704331

>>26703839
They see retail investors / goyim like a computer virus, they just need to install the right societal or legal antivirus to help extinguish you....... unless you bought GME

>> No.26704396

>>26703839
Their lender is responsible for closing the shorts.
Price goes up.

>> No.26705026

>>26703839
Some1 ll press the turbo button on the fedprinter.

>> No.26705055

>>26704318
It's not just them. Also, hedge funds extract wealth from the goyim so this is a big deal

>> No.26705077

>>26704318
It is well beyond a "couple billion". We're getting close to infinite squeeze point with how over-borrowed this stock was shorted. 120% float should not happen, it's basically selling something that doesn't exist.

>> No.26705203

>>26704396
Even if Melvin Capital goes under and declares Chapter 11 (they likely will), the broker inherits all debt.

Someone is going to get fucked hard.

>> No.26705222

>>26704305
uncle joe already took down canada and germany, is your shithole next?

>> No.26705624
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26705624

>>26705203
So what does that mean for their short positions?
Will they have to liquidate?
Asking for a friend who owns some LGND.

>> No.26705668

>>26705077
This. The early movers who cover their shorts will have to buy the available supply. The ones whose orders do not complete will then have to buy their covering shares from those who've already bought shares to cover their positions, at a huge markup.

>> No.26705690

>>26705222
I dont think Ireland has much to worry about from America lol, half them wish they were born here, for some unfathomable reason.

>> No.26705855

>>26704305
Prepare for amerimutts to deliver freedums to your doorstep

>> No.26706044

>>26705624
I would assume liquidation means they are on the hook for market buys on all short positions. GME is a bit unique because it's shorted 120% of float, so they'll have to buy some stocks twice.

Now I'm almost certain that Melvin won't have the money to pay, especially if we get into infinite squeeze territory (imagine them having to buy all shares on the order books, including $50k prices).

But legally, someone will be accountable for that debt. Brokers will likely kvetch and the Fed will have to get involved. Ironically enough, it's much less than they've been printing for COVID stimulus plans and would be putting more money into the hands of everyday people.

Basically my understanding is Melvin -> Broker -> Fed is where the chain goes.

>> No.26706201

>>26705668
Yup, in theory they would be forced to pay market price all the way down the order book. Including absurd prices like $50k - $1m share prices since they MUST fulfill that contract.

>> No.26706512

>>26704065
And this will happen before the 2k checks

>> No.26706875

can someone explain to me how gamestop/amc/blackberry etc all wind up out of this? I have no idea how the stocks ballooning for them affects them at the moment. When the hedgies buy stock back, can they move to liquidate the firms as recompense?

>> No.26707861

>>26706044
Thank you.

>> No.26707945

>>26706875
If I was getting stock options, I'd be cashing out this week. Now, C-suite execs usually have tighter regulations and have to disclose that more openly. So they couldn't really dump without the SEC being up their ass right now.

Now as far as the company goes, GME won't hold the value it is now but I'm curious where it will fall back down to. That really dictates what happens next.

>> No.26708348
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26708348

>>26703839
boss fight

>> No.26708402

>>26706875
Stock shares on the open market have already been sold by the company to raise money. they are completely uncoupled from the actual financials of the underlying business other than a percentage of stock that are often held to award ass exec compensation. In short: this will not impact those companies' day-to-day operation.

>> No.26708471

>>26704121
not my taxes.
t. europoor

>> No.26708597

>>26705855
Your government will have to deliver some freedums to the american people first.

>> No.26709611

>>26707945
>>26708402
what about when people go to sell their stock back? surely the hedgies don't buy ALL of it back and the company has to buy that stock back at apremium. sorry that i'm retarded but I really only have a cursory understanding of it at all

>> No.26709891

>>26706044
>because it's shorted 120% of float, so they'll have to buy some stocks twice.
How does that even happen? Doesn't it have to be lent out in the first place? Most investors will hold shares and not lend them out?

Is it naked calls?

I'm a retard who just started to look into options stuff.

>> No.26710538

>>26709611
The only situation where you can force someone to buy shares of a stock is to cover a short position, because it is a contract to cover the borrowed shares they sold already. You can't force a company to buy their own stock back

>> No.26710783

>>26709891
It's like the housing bubble type stuff, funds and traders given leeway to do shady shit because they know that when push comes to shove the gov't will bail them out if it gets really really bad. Some will be allowed to fail to make an example, but the underlying financial machine is so intricately interwoven, it won't be allowed to fail

>> No.26711241
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26711241

>>26704065
If they do this, it will actually crash the entire US market. why would retail (AKA 20% of all trading) keep playing when they can just change the rules at the last minute?

I know I would sell all my positions, GME and others, and buy physical fucking gold and start preparing for the happening.

>> No.26711337

>>26710783
I know it's shady kikes up to no good lmao
But say bitcoin lending for short positions someone actually has to lend out the coins. Doesn't that happen with stocks too or no? I'm trying to understand the actual mechanisms of what is happening.

>> No.26711442

>>26710538
so the worst case then is that you have a bunch of people sitting on shares at their theoretical peak trying to sell that won't be able to, but the firms themselves aren't being harmed, nice. Final question, of course we hold for now, but how do we know when a good/the best to sell actually is?

>> No.26712003

>>26711337
You're gonna have to google it then, cause i'm not interested in spoonfeeding you

>>26711442
Hold til Monday