Posted on 01/31/2021 4:47:46 AM PST by Kaslin
Bfl
Robin Hood should rename itself the sheriff of Nottingham.
How do you sell a stock when there is no one buying it?
Or Robbin Hoods.
You don’t. But if the price goes down far enough someone will.
It’s a classic bear trap. Rare and fun to watch. Hedge funds have lost $75 billion so far on GME. Some have exited their positions (like Melvin Capital) others have joined. Short shares are still >100% outstanding. I guess $300 for a $10 stock is too tempting to pass up. Live and learn.
Perhaps, lenders will be revisiting their lending policies. /s
For later.
> “How do you sell a stock when there is no one buying it?”
If you’re a short, you buy back shares you sold to return them to where you borrowed them. You are both seller of someone else’s shares and then buyer of those shares to close out your position. You want to sell high and buy back low.
If you are a naked short (illegal), you put in a sell order of shares you don’t own and you haven’t borrowed. How is this done? This is done in several ways but one way is by abusing hypothecation agreements. In any case, you sell phantom shares but you must have some way of faking out the trading system, maybe special access or maybe you had shares but loaned them out for trading to multiple parties who don’t know they are borrowing shares that are also loaned to many others.
The way to make money in the stock market is to buy a stock. Then, when it goes up, sell it. If it’s not going to go up, don’t buy it!( Will Rogers)
Ha ha ha ....that's a real knee slapper. The SEC is now run by the wife of the disgraced FBI criminal, peter stzrok.
The sec ra. For the hills on this.
I have to agree here, I’m in the market, and I recognize companies in trouble yet morally just won’t tale a short position agast them as I do not wallow or want to benefit from someone else demise.
There are too many great companies and ways to invest out there! Short sellers are just paper and digital information pushers and gamblers and actually create nothing from these actions. Its time we take ea look at betting against companies for profit.
A number of years back, my company used Schwab, so I did too. On several occasions I used them to sell a few shares of company stock "at market". I noticed my sale just happened to hit at the lowest price of the day. Thinking it was a coincidence, a while later I sold some again. Again, I just "happened" to hit the low price of the day. Selling at the low point of the day (to the seller), and buying at the high point of the day (to the buyer), reaps a tidy profit to Schwab.
Did they always do this? I don't know. I took my shares out, and left them for good.
The elites have many vulnerabilities. It would be a pity if an invisible army of deplorables began to reveal them in tangible ways.
So, I assume you will not sell a stock that you have already purchased even if you realize that the company management is destroying the company and you expect the stock to go down.
Do I have this right?
“Schwab didn’t protect us when the COVID correction hit. So who are they protecting now, from whom and why?”
Profound questions that warrant answers.
If the SEC were to actually do the job with which it is charged, we would get some type of legitimate answers to these questions. Without answers the SEC, vis-à-vis the federal government, is just as crooked as the short traders, robinhood, charles schwab, etc.
My biggest concern here is the company Game Stop. What will happen to them now?
Despite all of the descriptions of short selling, I still do not understand the process. I think the only way for me to understand would be to go through a short sale process (preferably simulated) so that I can see exactly what takes place.
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