The Brehs of Wall Street (Offical Stock Market Thread)

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Everything's dropping, I can't access the reddit, don't know what to do

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Dallas' 4 Eva

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Depends on a couple other factors like float and etc but yea that’s the point.

Hedge funds and wall street has been shorting so hard they basically turned a lot of stocks into traps that you were guaranteed to lose money on.

But if you can drive the price and demand up enough on one of those heavily shorted stocks, you’ll force them to gradually lose on their shorts until bears lose faith and abandon ship, then comes liftoff.

Even if they don’t jump ship, hedge funds are gonna try and cover their options by buying the shares, which also drives up the price. It becomes a positive feedback loop.

On these small cap stocks, it don’t take that much to drive the price up, especially if there are a lot of shares floating, so it’s easy to buy.

You could essentially crash the stock market this way I'm assuming, which most of these idiots(Hedge fund investors) have most of their money tied into the stock market and that is why they are fighting back against this because unless the stocks are worthless they not only aren't making money, they networth is also being fukked over because of how much they are losing?
 

CouldntBeMeTho

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But isn't damn near every stock shorted? Maybe not to the extent of Gamestop, but still running on a short?
*Taken from a article
GameStop has been one of the most heavily shorted stocks on the market for a while now. Since the middle of 2019, the "short interest" (i.e., the number of shares investors have expressed interest in borrowing for a short position) has heavily surpassed the stock's "free float" (i.e., the number of actively traded shares available). In other words, investors as a whole were so sure that GameStop stock was going to go down that they wanted to borrow every single available share (and then some) to make money on the coming collapse. And keep in mind, this phenomenon started when GameStop stock was already trading at historic lows of $5 a share or less.

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GameStop faces plenty of headwinds to its core business of selling disc-based games in brick-and-mortar stores (as we've written about extensively). But that extreme level of short interest in an already heavily depressed stock was probably overly pessimistic about the company's near-term prospects.

"They don't have net debt, so they're not going bankrupt or anything," Wedbush Morgan analyst Michael Pachter told Ars last week. "And with the new console launch, they're probably going to sell a lot of consoles and be fine."

As it turns out, a group of retail investors noticed this excess of pessimism and was poised to exploit
 
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