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/biz/ - Business & Finance

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26704113 No.26704113 [Reply] [Original]

I'm sure this has not been asked yet so can you people please explain what's going on with the GME situation?

>> No.26704203
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26704203

>>26704113

>> No.26704386

basically I understand the hedge funds have to buy the stocks at some point as they need to give back the borrowed stocks? but when is this, how does this work?

>> No.26704526
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26704526

>>26704386

>> No.26704562
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26704562

>>26704113
Anon, See the picture attached. The screen caps kinda capture the whole sentiment here.

>> No.26704561

>>26704113
Me too, I only just heard of this. When did this start? And what plans do you have when Washington reverses all trades and mobilizes 25K troops to put you guy down?

>> No.26704685

buy buy buy, kikes mad they have to 1 step removed pay out the goy for their failed jew scheme

>> No.26705044

>>26704526
if they have to buy back these stocks then what happens to the stocks you buy now? I mean I assume they don't get forcibly bought right?

>> No.26705170

>>26704526
also does this mean the thing is over at friday or can it keep going?

>> No.26705206

>>26705044
They have to be bought regardless of market price

>> No.26705374

>>26705206
yes I understand the hedge funds are forced to buy a billion stocks or whatever but what if people don't want to sell? I really don't understand this stock thing, are new stocks created or what?

>> No.26705451

>>26704113
>borrow stocks, more than even exist
>sell them
>expect company to fail so you can buy them back cheaper and pocket the difference
>pleddit finds out and buys the stocks making the price go up, which will force the borrowers to buy them back. The borrowers need to buy back more stocks than even exist, so the price will skyrocket when they can't, basic supply and demand
>Talmudic kvetching ensues

>> No.26705515
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26705515

>>26704203
>YOU'RE GOING TOO FAST!

>> No.26705615

>>26705451
if I were to buy a one would tthe hedge fund be the one buying it back or what?

>> No.26705881
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26705881

>>26705374
No new stocks are not created. Basically this will go up astronomically on Friday and frens will celebrate

>> No.26705902

can someone post a list of other stocks to be pumped?

>> No.26706011

>>26705881
how does the hedge fund buy these stocks if the stock owners aren't selling?

>> No.26706258

>>26706011
There's the rub, anon.

>> No.26706292

>>26705615
not directly, but indirectly yes

>> No.26706481

>>26706258
so this could keep up even after friday or what?

>> No.26706878
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26706878

When the pandemic is over people will really want to see movies i think. AMC could be a way to go if you think that theory is correct.

>> No.26706943

>>26704113
It's been asked a million times
The hedge funds "short sold" Gamestop
To "short sell" means you borrow a share you don't own, and sell it
If the price goes down you can buy it back at a cheaper price and return it to the original owner keeping the profit
In other words in simplest form
For example let's say you borrowed one Gamestop stock worth 38 dollars
You borrow it for two weeks
You believe the price would be 15 dollars in two weeks
So you borrow the stock and sell it for 38 dollars
Two weeks later it has fallen in value to 15 dollars
You need to return the stock you borrowed so you buy it at 15 dollars
and return it to the original owner
You sold it for 38 dollars but only had to spend 15 dollars to buy it back
So you have made a profit of 23 dollars
The problem comes if you borrow the stock and sell it at 38 dollars but it doesn't go down in price
The price increases
Say to 300 dollars
So two weeks later the owner wants his stock back so you have to buy it at that price
Now instead of a profit of 23 dollars
You have made a loss of 300 dollars
The more shares you have borrowed
or "short sold"
The more money you lose
If you had borrowed 10, 000 shares now you have lost 3 million because that's how much you need to pay to buy shares to pay back the original owner
That's what these wall street hedge funds did
They borrowed millions of Gamestop shares and sold them thinking they would go down in price and they co6 buy them back cheaper and pocket the difference making a profit
They did not count on mill8 of ordinary people buying up the shares and making them go up in price
The more people buy the shares in Gamestop the more the share prices go up and the more expensive it is for hed6 funds to buy back the shares
Eventually it will be so expensive for them that many of the them will go bust

>> No.26707262

>>26706943
I understand this but I'm confused over how the hedge funds get the shares back by friday if people don't sell them back?

>> No.26707280

>>26704526
>goys on biz
it was all reddit
have sex

>> No.26707548

>>26707262
they dont thats why the price will keep climbing. the hedge fund legally has to buy them back but people dont have to sell if they dont want to.

>> No.26707843

>>26705451
>Talmudic kvetching ensues
kek

>> No.26707844

>>26707548
if people don't want to sell then how come I could buy one right now? or is it like 100k of the necessary 10 million are up for sale and the hedgefunds aren't currently buying those 100k as they're too expensive, leaving it to people to buy?

>> No.26707856

>>26707548
so what happens to the share that i own? what if i literally never sell?

>> No.26708006

>>26707856
this confuses me too, if they literally have to aquire every stock out there doesn't that in a dumb way mean you could charge whatever you want?

>> No.26708129

Protip. Fractional shares can be bought on robinhood, meaning you don't need to pay for full shares buy half or 1 1/3 whatever floats your boat.

>> No.26708142

>>26707856
once the short squeeze is over i imagine the price will drop back down because someone will sell at some point. and who knows if the sec is going to get involved lmao. but if they do and rule against the little guy there will be no trust in the stock market anymore

>> No.26708181

>>26706878

Best memes since 2016 hands down

>> No.26708253

It's a straight up attack on our financial system. There's an honor code to investing. These buys from Reddit/4chan basement dwelling neckbeard trolls are totally artificial and of questionable legality. These are not legitimate investors, these are pathetic nihilists without financial qualifications trying to crash financial markets and we will not stand for it.
Those caught manipulating hedge funds at the expense of ordinary people like pensioners who invest in them should and will be punished.
You have been warned

>> No.26708314

>>26704386
Friday.

>> No.26708367

basically, plebbitors have BTFOed traders, and the whole US government is seething about it

>> No.26708401

>>26707844
people are still selling because they want to make money, the hedge funds literally cannot cover themselves entirely though because they shorted more than the number of stocks that exist if i am reading the situation correctly. also they want to wait for the price to go down because buying at this price would probably bankrupt them.
basically they doubled down on their bad bets

>> No.26708411

>>26707262
Each share gets more valuable, that's the point. The shares are finite. If they need to buy 3 millions in shares, but there is only say 1 share buyable, this share and all others already bought increase in price. (this is a fairly over simplified example)

>> No.26708516

>>26708253
>There's an honor code to investing.
kek

>> No.26708518

>>26708253
go back

>> No.26708699

>>26708253
get fucked, the hedgefunds shorted to a completely unreasonable amount.
when they manipulate the market and fuck up they get bailed out, but when the little guy sees that they fucked up and want to make money off of billionaires mistakes you say its dishonorable?
whatever you classist fuck

>> No.26708739

>>26707280
Damn reddit can be kinda based

>> No.26708752

>>26708314
say it's worth 1000 in friday
what if people still refuse to sell even then, what happens? it's not like people are forced to sell but they are forced to have the stocks? isn't this a bit of an dilemma even if they had the money?
>>26708411
but if the value increases and people just won't sell then it's literally impossible for them to get the stocks back even if they had an infinite amount of money

also if they literally have to buy every stock out there (is this true) then wouldn't that mean I could hold on to one and force them to pay whatever I want?

>> No.26708795

>>26708253
>our financial system
obviously not lol

>> No.26708830

>>26708253
>neckbeard dweller average salary of 30k
>ordinary Hedgefond average salary of x million

Topkek on that crying, drama queen.

>> No.26709042

>>26706011
I'm guessing they will keep market buying and if they have market bought all the available stocks, then you could basically put your stock up for sale for 1 billion USD and they would have to buy it. Now this won't probably happen since many people will be willing to sell GME at $10k or $100k etc. And if the hedge fund is out of money, but still hasn't bought back all the stocks, this would mean that the broker has to buy back the stocks and if the broker is out of money, then the broker's bank has to buy the stocks and if the bank is out of money then the bank will get bailed out.

>> No.26709065

Why etoro confirmation takes three business days, will I be late /biz/

>> No.26709245

>>26708752
Stocks can get generated and were before. Basically the amount of stocks multiplies and any stock available divides in its value. So basically you keep the same value but the overall number of stocks increases so the one who has to buy x amount, will be able to. This already happened multiple times with apple and Amazon. Each huge dip in the charts equates to adding new stocks.

Still, buy, hold, profit. Stonks go up!

>> No.26709279

>>26708518
>If he possesses a cringe take he must not be from 4chan
If it's not worth responding to, don't respond. Even if it were true, insulting some anon won't convince anyone or make them fuck off.

>> No.26709332

Too bad my hands are too shaky to wanna buy after the pump. Hope you anons make it, I’ll remain comfy with my shitcoins

>> No.26709362

Rich people artificially inflating the price of their worthless shares so they can dump them on morons.

>> No.26709418

>>26709245
okay so basically on friday if this keeps up the alternative is that the amount of stocks will start to increase?

>> No.26709464

>>26708253

ooooh im shaking

>> No.26709660

>>26708752
i think if some of the people they have to sell stocks to were willing to wait tehy could sell the stocks they owe to some people then buy them back at possibly a lower msrket price than what the current high would be if those people were willong to sell, so eventually they could fill all their orders without possessing all the stocks, but they will lose money every time onstead of gaining money each time as they had bet on. so we will just have to see how it plays out.
i just bought a single share to see how it plays out lol

>> No.26709694

>>26708253
LOL GET FUCKED MELVIN HEDGIE. JUMP FROM THE HIGHEST FLOOR AND DO A FLIP ON THE WAY DOWN

CANT STOP
WONT STOP
GAME STOP

WE LIKE THE FUCKING STOCK

>> No.26709911

>>26706011
well people will sell when they x500 their money

>> No.26709935

They've closes their position so what happens next

>> No.26709977

okay so friday
everyone sells = value down
everyone holds = value up but if everyone still holds then something fucky will happen?

>> No.26710254
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26710254

>>26709935
>we closed our position, please stop buying, just let it go down for a bit

>> No.26710278
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26710278

>>26708253
Only npcs defend the system with such ferver.

>> No.26710335

>>26709977
will probably hit 1k on the day they start buying but will quickly go back down after. i dont know the process at when they have to buy.

>> No.26710380

>>26709935
there isnt full sec confirmation. they probably closed a few vut the bumbers show there are still around the same number of shorts.
they are lying id say.

>> No.26710946

so friday is a critical moment and you should be ready to sell at a moments notice?

>> No.26711237

So why exactly are they forced to buy on friday?
You can hold shorts forever as far as I know as long as you pay rent on it.
And how are they supposed to buy 260% shares?

>> No.26711250

>>26705374
> what if people don't want to sell?
Then they will have to keep increasing their buy offer price.

FOR FUCKING FREE
ALL YOU HAVE TO DO IS HOLD

>> No.26711542
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26711542

>> No.26711808
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26711808

>>26705170
We have no idea how this will play out, but once one hedgie starts to fold, they all will, that's what a squeeze is.

>> No.26712190
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26712190

>>26710335
How exactly do they plan on buying more than 100% of the issued shares?

>> No.26712842

>>26704113
on friday theyre giving out free money to all shareholders

>> No.26713187

>>26712190
>29
Someone asking the real question right here