U
User.45
Guest
It's been the most hilarious event of the month really. I've been told many times that stock market people deserve their wealth because they do very risky things every day. Now some of them got to taste what REAL risk looks like.
Can anybody explain why I should feel sorry for large scale short sellers? I thought the beauty of the stock market was to aggregate knowledge. People gilding stocks do just that. Again, lot's of fun.
"GameStop effect" could ripple further as Wall Street eyes short squeeze candidates
The clash between retail traders and Wall Street professionals that sparked roller coaster rides in the shares of GameStop Corp may pose a risk to dozens of other stocks and potentially create a headache for the broader market, analysts said.
www.reuters.com
...a large percentage of investors have borrowed the stock to sell it in anticipation that they will be able to buy it back at a lower price and profit on the trade. But if the stock rises sharply, those investors may be forced to buy back the stock at a loss.
“The unfortunate events in GameStop this week may be building a dangerous precedent for markets whereby retail investors act en masse to leverage their buying powers to spark fragility events,” analysts at J.P. Morgan said in a note.
Using derivatives and coordinating buying on websites such as the Reddit forum wallstreetbets, retail investors have had an outsize impact on markets in recent months. Hedge funds Melvin Capital Management and Citron Capital closed out short positions in GameStop earlier this week after buying pressure pushed up the company’s shares.
Can anybody explain why I should feel sorry for large scale short sellers? I thought the beauty of the stock market was to aggregate knowledge. People gilding stocks do just that. Again, lot's of fun.