i admittedly don't really understand how the stock market works
@lottev a lot of it is weird make belief from what I know
@coolboymew there's this stuff going on with reddit and gamestop and i don't really know how any of it works, makes it a bit difficult to understand the jokes. i think i'm just a bit of a dumbass 
@lottev
Basically what happened with Gamestop is that a dumbass hedgefund shorted the stock over 120%. How is that possible? Apparently you can do that if the stock is lended or some bullshit, it doesn't matter
Shorting is a dangerous game. You're betting on a company stock failing. You buy stocks now and agree to pay later, which then your profit happens if the stock falls. Apparently it's also shitty because it's bad for the company I heard
But shorting is a dangerous game. With normal stocks, you lose your initial investment at worst if the stock goes down. With shorting, you basically have infinite loss potential
All of this is publicly available. WSB saw that the stocks were heavily shorted and that Gamespot stocks were worth nearly nothing, so they went ahead and bought stocks, which makes them increase, which at the same time fucked over the hedgefund shorting the stocks
At the level the stocks are right now, the hedgefund should be bankrupt. I've heard things that they will have to "close" on Friday. They could have closed earlier, but they decided to doubledown apparently
Basically what happened with Gamestop is that a dumbass hedgefund shorted the stock over 120%. How is that possible? Apparently you can do that if the stock is lended or some bullshit, it doesn't matter
Shorting is a dangerous game. You're betting on a company stock failing. You buy stocks now and agree to pay later, which then your profit happens if the stock falls. Apparently it's also shitty because it's bad for the company I heard
But shorting is a dangerous game. With normal stocks, you lose your initial investment at worst if the stock goes down. With shorting, you basically have infinite loss potential
All of this is publicly available. WSB saw that the stocks were heavily shorted and that Gamespot stocks were worth nearly nothing, so they went ahead and bought stocks, which makes them increase, which at the same time fucked over the hedgefund shorting the stocks
At the level the stocks are right now, the hedgefund should be bankrupt. I've heard things that they will have to "close" on Friday. They could have closed earlier, but they decided to doubledown apparently
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@coolboymew @lottev
>You buy stocks now and agree to pay later, which then your profit happens if the stock falls
You got that a bit wrong I think. You sell stock now (that you don't have) for $10, and agree to give the stock to the new owner next week. Until then you expect the stock to drop to $5, so you yourself buy it later on for that $5 and immediately give it to the guy who bought it from you last week. Result: $5 profit.
But if instead of the stock dropping, it increases to $20, you're forced to buy at that price, and give it away to the guy who bought from you last week with $10. Result: $10 loss.
