#1182

IIRC the guy replied that he found it really funny

1 Like
#1183

Yeah thankfully it was all oddly heartwarming in the end

1 Like
#1184

The broker doesn’t sell the shares though, he loans them out, presumably at a monetary value rather than a quantity.

Eg I will lend you $1 billion worth of shares, not 1 billion individual shares.

So the broker is not risking anything apart from the possibility the hedge fund defaults.

I understand all this now, at least 27% anyway.

#1185

It doesn’t look like “my cup of tea”

#1186

the shares could also not lose any value in the first place

#1187

Are some people ITT conflating all of Reddit as if it’s one site? It’s fair enough to criticise up/down-voting as a mechanic, tbf, but Reddit isn’t just one tranche of people - it definitely skews younger/male, but that’s far from all the people who use it. There are TERFs and racists on there, but there are also trans and anti-fascist communities on there.

Not having a go at anyone or anything, and I may well be getting the wrong end of the stick, but I just thought it worth mentioning. tbh I’ve probably got the wrong end of the stick, as per

14 Likes
#1188

^ this.

If you’re lending shares then you think they’ll have longer term value beyond the length of the short contract.

You either believe the person performing the short is wrong or you believe they’re right and yet there’s still longer term value for yourself.

#1190

Enjoying Warhammer 40k and 3DS subs atm, nerdy and wholesome as anything

1 Like
#1191

I guess I was. I don’t go there much and have seen lots of unpleasantness when I have, but as I mentioned earlier, I shouldn’t conflate the whole thing with the worst of it. I still can’t help but feel somewhat uncomfortable with this share thing, partly because the group style themselves as a cross between 4chan and Bloomberg, and partly because the tactics just remind me of appaling internet pile-ons against marginalised folk. Happy to concede that this is my problem and I’m obviously uninformed, so will bow out of the discussion.

#1192

Yes but if I have 1000 shares at £5 each, and I lend them out for £200 to some short seller, when he hands them back they’re worth say £1.50 each.

So I’ve gained £200 hard cash but I’ve lost £3300 in value. Obviously it might not happen so my shares could be worth the same or more but surely the odds are they will be worth less as this guy is betting on it…

If instead of lending them I just sold them outright I don’t lose any money.

#1193

if you are holding shares that you expect will decrease in value you probably want to consider a different career

6 Likes
#1194

I do not trust the stonk market

#1195

Oh no, please don’t bow out! I’m not that familiar with that sub myself, and honestly it’s usually better to trust your instincts on this sort of thing. The idea of it being comparable to a pile-on against marginal people is an interesting one, tbh.

1 Like
#1196
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#1197

You’re making the assumption that you’re looking to day-trade in the same way as the short seller. You’re not. You’ve invested on long term value and thing the price will rise over a long period and/or dividends will achieve the value for you.

1 Like
#1198

So are we saying the majority if the time these short sell guys fuck it up?

#1199

No, we’re saying that both the short seller and person who lends the shares can be right and come out making a profit, because they’re holding the shares for vastly different time periods. The long term investor is trying to smooth out the fluctuations in share price by holding them for a long period, the hedge fund is trying to capitalise on those fluctuations.

Yes, if the short seller is right then the original investor lost out during that short spell… Their asset is worth less today than it was yesterday.

But they might make their money back in dividends over the next 10 years, they could sell in 10 years time when GameStop is the next Amazon. That’s the basis they’re working on.

1 Like
#1200

STOOOOOOOOOOOONKS

5 Likes
#1201

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#1202

Did GameStop just go up to $500 in pre-market trading?