Current Affairs Stocks and shares and stuff
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Sassy Colombian
Member: Team PoP
Pushback against the corrupted financial establishment, why not lol
Sassy Colombian
Member: Team PoP
Efcjake
Player Valuation: £80m
No, I don't think it is over yet. At least not for the GME stocks.
That short squeeze hasn't happened yet. WSB and the hedge funds are at the stage now were the hedge funds are doing everything they can to get the price to drop. Either way they are done for when their buy orders come up.
The other stocks WSB are backing don't have this short squeeze play attached so the only thing driving the likes of AMC share prices right now is hype.
I do wonder whether Citadel will have put pressure on Robinhood to block the stocks. Vast majority of robinhood's revenue comes from selling order flow to people they have helped hammer over the past week.
Efcjake
Player Valuation: £80m
The issues that the SEC are going to look into over this deal will be interesting to see how it plays out.
There's lots of rules aimed at preventing people from creating pump and dump schemes. There's no real identity verification required on reddit or WSB so there is the potential for people to abuse that community and use them to facilitate their own profits at the expense of the WSB community. Since GME is covered with a huge short play at over 120% of the total stock then most of the average wsb folk who got in early will realize some huge profits if they time their sales right.
Since they are operating as a loose collective though they are all encouraging each other to hold the stock and not sell before the short options are called. Though nobody knows exactly when this will happen and there is the chance that late comers to the party will be left holding some of the stock depending on when the hedge fund calls are played.
If the situation was different and this short play didn't exist then this would definitely fall under suspicion as a pump and dump scheme. The anonymity of reddit and now the wide exposure to the size of the possible funds they could organize could lead to some people being taken advantage of in the future.
There's lots of rules aimed at preventing people from creating pump and dump schemes. There's no real identity verification required on reddit or WSB so there is the potential for people to abuse that community and use them to facilitate their own profits at the expense of the WSB community. Since GME is covered with a huge short play at over 120% of the total stock then most of the average wsb folk who got in early will realize some huge profits if they time their sales right.
Since they are operating as a loose collective though they are all encouraging each other to hold the stock and not sell before the short options are called. Though nobody knows exactly when this will happen and there is the chance that late comers to the party will be left holding some of the stock depending on when the hedge fund calls are played.
If the situation was different and this short play didn't exist then this would definitely fall under suspicion as a pump and dump scheme. The anonymity of reddit and now the wide exposure to the size of the possible funds they could organize could lead to some people being taken advantage of in the future.
Looking forward to this podcast on GME, they are usually very good at both explaining what is going on and potential ramifications on a wider scale such as this
Their lawyers also probably got very twitchy about the likely lawsuits of the latecomers left holding the bag when the moon shot falls back to earth.
Robinhood lawyers are going to be busy!
However this would seem to protect them for this lawsuit
However this would seem to protect them for this lawsuit
carolinablue232
Player Valuation: £70m
Cruz and AOC agreeing on something...well I’ll be damned.
I do think this will ultimately hurt more of these retail investors than benefit, but you also shouldn’t be changing the rules to protect institutions that made stupid bets.
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