Posted on 01/27/2021 6:50:03 PM PST by SeekAndFind
Great post! I’m holding the line. I thought I was buying $AMC at $19 but got it at $13. No matter what, I’m holding. It’s going to be fun to see what happens.
There was humerous post on Twitter that said, “The SEC about to ban outsider trading” LOL!
You’re right. The Schadenfreude really is irresistable!
The hedge fund will get bailed out by the libs on Wallstreet.
“And they have much better access than you or I to printed, fiat, zero-interest money from the Federal Reserve. The system is rigged in their favor.”
How so?
Probably. And in history books 70 years from how it will be studied as this first clear move that destroyed most people’s illusions that investors all ran the same risk. It will be seen as something that should have been a warning sign less that a year before the greater depression in America.
BS has a way of sorting itself out.
The clear message here, that markets are a rigged insider game. And that will ultimately destroy the entire market.
They won't have to. A lot of the retail trading platforms blocked (sound familiar?) retail investors from buying GME and other stocks popular with the WSB folks. Subsequently, GME plummeted 44% today and will likely continue, saving the HF shorters.
The Big Boys always looks out for their own.
I figured it out a couple of decades ago when I was going to buy an ipo and I was not allowed.
It’s a secret......
Trading Places explaining the basics of commodities
https://www.youtube.com/watch?v=ySxHud7abko
Billy Ray : Sounds to me like you guys a couple of bookies. Randolph Duke : [chuckling, patting Billy Ray on the back] I told you he’d understand.
Apparently. But if I discover the secret I’m going to declare myself a hedge fund and join the dark side.
I hope they target the stock I own now called Tesla ! : )
I would like it to go up 10x more.
2 questions:
1. Why would "other investors" in the description above, let the HF "borrow" the shares - why wouldn't they just sell at the initial high price and pocket the money? Guess I'm not understanding the short-sell process...
2. Why is this such a big story? Isn't GAMESTOP a shrinking, tiny outfit? Like Blockbuster videos was? This isn't a company like Toyota or Microsoft, we're talking about. I don't get it....
If you're using margin to finance your purchases, your broker can lend some of your shares out, to get the cash you need to cover your margin loans. You and your broker can earn interest on the shares lent out.
Online brokers, such as E-Trade, Interactive Brokers, Fidelity and Charles Schwab, offer this option. The fees are typically split equally with the broker.
The brokerages lend out the securities to third parties such as traders who want to sell short, says Andrew Wilkinson, chief market analyst at Interactive Brokers. Individual retirement accounts, or IRAs, are also eligible to participate in the stock lending program.
Lending stock to short sellers on Wall Street means that investors will receive "interest on the cash collateral posted to their accounts for the loan based on market rates," he says. Other brokerages pay a fixed rate for a fixed term.
"We split the fee received from lending stock 50-50 with the client," he says.
Lending and borrowing programs are an advantage for those who "may enhance the yield on the stock sitting idle in his or her account," Wilkinson says.
https://money.usnews.com/investing/investing-101/articles/things-to-know-about-lending-shares
It's a big story not because of the company but because of the action. Greedy Hedge Fund guys shorting,shorting,shorting,and shorting a small declining company. They weren't content with making money beating a company into the ground, they wanted to stomp his guts out. And in so doing exposed themselves to some small would be Davids against the Goliath. Their exposure subjected forced them buy these shares at whatever the price and so these people bought in to force the price up, causing great anguish to these Hedge Funds not used to being on the receiving end of a beating. They're used to giving them.
These people are sick.
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