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/biz/ - Business & Finance

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26692833 No.26692833 [Reply] [Original]

Can someone explain to me like a child why are hedges are losing money because a low priced stock went up in price?
What are short sellers, why are they bad or something?
Are stock selling app preventing people from buying stocks?
None of this shit makes any sense to me

>> No.26693080

When your PP get hard, you touch your PP and it feels good, but when hedge fund touch their PP it doesn't feel good, it hurt, but they can't stop touching their PP.

>> No.26693099

>>26692833
They shorted it for more than it was even possible to short it for.
The more it goes up the more fucked they become.
They literally can't pay the shorts off if it doesn't go back down.
Retailers figure this out and just keep buying and longing it.

>> No.26693249

>>26693080
This

>> No.26693270

A short is when you borrow a stock and sell it at current day price but issue a promise to pay at a later date. You're basically betting that the stock will take and what you borrowed and sold at 10.00 can be repaid when it's at 3.00.

The key here, is the promise to pay at a future set date.

Then a bunch of autists spike the price from 10.00 to 300/1000/10000 and you're basically fucked as someone that "shorted" the stock. If you can't pay, the broker has to pay. If the broker can't pay, the bank has to pay. Either way, it's getting paid at "present day value" when the short gets called due.

>> No.26693282

Tu mani much short