Stocks & Shares

That's a fair amount of money to risk.

 

It’s not them it’s yew

 

I don’t think there was too much risk Helen.
A group of Joe public have just done what traders have done for years and manipulated the market, and they don’t like it. Could have huge repercussions. Very interesting

 

Not a scooby doo what anyone is talking about in this thread.

I can however tell you what happens when sodium gets wet and how to calculate the area of a circle.

 

https://www.theguardian.com/busines...aking-battle-global-ailing-stocks-hedge-funds

Be worth keeping an eye out to see who they target next to get on.

 

1. Hedgefunds saw that US video games retailer Gamestop was on its last legs
2. Hedgefunds 'borrow' a tonne of shares in Gamestop, paying a small fee to do so
3. Sell them as soon as they receive them, expecting the share price to drop
4. Idea is they then re-buy the shares at a lower price later to return them to the original owner and pocket the difference
5. They got greedy
6. Some wise folks on Reddit saw that *all* of Gamestop's shares had been taken in this way
7. If Reddit people bought these shares, the hedgefunds wouldn't be able to buy them back to return them to their original owner
8. Reddit people started buying as many shares as possible, and hedgefunds start panicking because the demand sends share price skyrocketing
9. Word gets out, and then everyone is buying Gamestop shares at inflated rates
10. Hedgefunds are still legally obligated to return a certain number of shares to the original owner they 'borrowed' theirs from before selling them earlier
11. Hedgefunds now have to pay thousands of times more than they expected, and have lost something like $13bn, which has basically gone straight into the pockets of Reddit People, most of whom put something like £25 in
12. Hedgefunds now want to change the rules because they only like it when they manipulate the market
13. Wall Street is very sad
14. Reddit is very happy

I think that's about it

 

Bless......

 

Yes, yes it is. Well done to them

 

******** indeed

 

You can buy shares in GME again now. If someone wants to join the revolution you can buy 1 share for just under $200 but no idea if they will go back up again today.

 

Call me thick but why doesn't the original hedgefund who " borrowed" the funds just do nothing?

They could just sit it out until the share price goes back down surely?

 

Because they are contracted to return the shares that they 'borrowed' by a certain date.

 

It's currently £144 a share and looking at the threads on there especially that one it's going to be worth a lot more by the end of today so get on before 2 pm UK time.

 

What happens if they don't return the shares in time?

 

The original Hedge Fund they targeted owe more money than the Hedge Fund is worth. Basically, bankruptcy and a lot of rich people* are a lot poorer.

*With the possibility that pension funds and other investors are collateral damage.

 

So they don't buy them back and they go bankrupt but all those people that are buying the shares at ridiculously inflated prices will lose money too? Gotta love the stockmarket!

 

Thanks. The potential "collateral damage" doesn't sound too good. Not if it mucks up pension funds for ordinary people.

 

I would hope I don't need to say this, but do not take investment advice from DB3K.

There is potentially going to be a gamma squeeze today due to the expiry of options but there is also going to be a hell of a lot of attempts to surpress the price. If there is to be a full short squeeze it probably doesn't happen today, but next week. The price may go dramatically up at some point today, it may not.

This is speculative investment, don't invest any money you aren't prepared to lose and most importantly if you do buy and it dips don't panic sell. This is incredibly volatile - it was down to $120 a share at one point yesterday before recovering and is now trading at c. $400 on the pre-market.

For the avoidance of doubt this does not constitute financial advice, I am just an idiot on the internet.

 

I'd back the big boys to have better staying power though.