I just looked at pre market trading and I thought all those stocks were down - well not that one, you are correct it is up for some reason.
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A huge amount of speculative capital(speculation) becomes productive capital(products, and services). Thats why they exist, so you separate both making a doom’s day less likely to happen.
Realistically someone on options can lose everything whereas someone on stocks loses way less.
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At 6:50 am EST, GME +25%, up $89 to $436. Not even bothering with the decimals.
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I took it as a nice display of how shakey investors and brokers tend to be.
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I wonder how much is due to really small investors (> $5k). In any case, there is too much liquidity in the system available to the investor class for this kind of speculation to happen. Capital is way too cheap compared to labor.
I’ve read that many used their $1,200 and $600 covid relief checks to speculate in the market instead of pumping up consumption. Maybe Congress should think seriously about halving the income caps for the next net $2k covid relief checks. Round down to $35k for individuals, $70k for couples.
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That doesn’t really answer my question. You are just basically restating it is gambling. It seems to me eliminating these would be no lose whatsoever to the entire progress.
However, I will go with WoW forum is a lousy place to go for answers on this like this.
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I told you it is a grey area.
It is not gamble because it works as a pool from a high accumulated capital layer lookiing for high gains in short time to be converted… in jobs.
However if said jobs doesnt happen to exist, they get the owner’s shares whitout any due responsability.
If you dont separate both, everything but monopolies becomes speculative.
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It is the most efficient way to raise capital until someone comes up with a better method. Of course there can be speculation and corruption in the system when it doesn’t work - like right now.
Kind of silly that Gamestock (definitely not Gamestop atm) can’t issue shares to raise cash when their stock price is so high. Elon Musk did it last year, raising cash for Tesla when TSLA stock was up big.
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You are completely missing what I am asking.
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say what? those short sellers aren’t contributing to gamestop’s finances directly, they were betting those shares would go down so THEY personally could make money.
Anyway, I am leaving this discussion. Appears to be of not much value.
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You asked what they are.
Thats what they are.
A gamble is pretty much i bet 100 you bet 100 if i win i get 200.
Options you provides 100 if you lose you stay with 25 but can become 40 when i f up next time or even higher. Or lose more till 1. Depends on the metrics. Options entry value are always higher than stocks
To be fair he actually has on demand products.
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Sometimes short sellers cut through the hype like with Wirecard.
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People still buy stuff at Gamestop. Fewer than 10 years ago but they are still a going concern.
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It is still or relevant, but despite the expansion failure it had in WoD and BfA, the game remains standing and even does not go from being a killer MMO to this style of game that someone else wishes they had.
I think it’s still fine for now, and I don’t think anything bad will happen unless I make the same mistake as in WC3: refunded and Diablo Mortal.
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Omg imagine being a billionaire and getting outsmarted by a bunch of reddit dwellers. Holy hell that’s an embarrassment.
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Just curious, which billionaire got outsmarted?
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Fewer and fewer makes them not on demand.
The billionaire will still be billionaire. Or maybe millionaire if he really f up immensely.
The collateral damage though will make a lot of people lose jobs and get poor lol.
Realistically you can buy it for fun rn but the only dude gaining is the new speculative millionaires that convinced you to stock their pile, you wont get anythign closer to what he got and may end up losing all of it if they halt.
Too late to halt trading in the stock. Too much big money on both sides. Besides, I’d think that the hedge funds on the long side know how much shares are still short and they are going to squeeze and squeeze until every last dollar is wrung from the weak shorts.
Just think - if someone had shorted 100 shares of GME on December 30 for a $1,880 ‘investment,’ they would be down around -$33,000 right now. Worse if they had shorted the calls.
The moral of the story is if you can’t afford to lose money, don’t gamble (unless you’re using someone else’s money 
).
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- hedge funds borrow against stock valued for example at $10 per share but have to pay back what they borrowed after x amount of time however must pay it back at the now current value of the stock.
- So these hedgefuns bet on that stocks will decrease in value (they prey on failing companies), so for example if the stock’s value decreased by $2, they only have to repay what they borrowed at $8 per share, so they make a $2 profit.
- Smart redditors and 4chan saw used publicly available information to see that these hedge funds were shorting/betting on gamestop’s stock, so they pulled a literal Robinhood and begin buying up stock, driving up the price…
- as a result these hedgefunds now owe gamestop or wallstreet billions of dollars as the price per share skyrocketed… their gamble backfired…
- they cried foul, and cried to the fatcats in wallstreet and the feds…
- so now they are probably going to get bailed out by the feds.
- unfortunately politicians and the government is chiefly ran by old people who are computer illiterate and out of touch, so they were lied to by these wallstreet fat cats that redditors/4chan hacked to game the system when in reality they used publicly available info and no hacking occurred.
- Plus the media likes to pour gasoline on fires, so is jumping on the bandwagon story of hacking even though they know there was hacking but don’t care.
- so as a result the feds will likely bail out these wallstreet sc*mbags who exploit and treat wallstreet like if it’s a casino and bet on company’s failure to get rich.
So simply put, it was a a case of Robinhood, where 4chan/reddit investors played the part of robinhood and beat the rich fat cats at their own game, but rather than a victory for the little man, the feds got involved and are bailing out the fat cats who probably have the feds in their pockets.
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were taking our $$$ back from walstreet fatcats
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