Issuing new shares requires approval of existing shareholders. But, any other holders of the stock can sell to allow them to cover. Average volume is 24M shares so i would imagine that getting out of the short isn't that impossible.
The current number of shares on loan is 44M, and the price increase since yesterday is $100. So we're talking about a paper loss right now of $4.4B.
That might sound like a lot but i'm not sure how significant it really is.
This actually happens all the time with meteoric rises, the company does a public offering to take advantage of the high price. VERY common amongst penny stocks or companies strapped for cash, as I would imagine Gamestop is pretty strapped due to covid and the ability to download games online.
A hedgefund had a bunch of shorts on game stop.
Reddit wallstreetbets got together and all decided to buy the stock.
There are 50m stocks still shorted.
If everyone on wallstreetbets holds then they can never buy a stock to sell it to cover their short.
GME hits 5k just as a LOL to fuck over a hedge fund.
Thank you for knowing wallstreet bets had a big hand in this pump. They do this with a lot of meme stocks.
If GME begins to issue additional shares for sale, wouldn't this little game end rather quickly?
It would be the appropriate corporate action, non?
Fucking over your stockholders is the appropriate action?
Fucking over the shorts is fine by most honest investors.
Well, bond holders and debt holders and wage earners are higher on the ladder, so yes you do fuck over the stock holders first.
Those people arent shorting the stock, though. Fuck the hedges and their billions in losses for shorting GME.
Issuing new shares requires approval of existing shareholders. But, any other holders of the stock can sell to allow them to cover. Average volume is 24M shares so i would imagine that getting out of the short isn't that impossible.
The current number of shares on loan is 44M, and the price increase since yesterday is $100. So we're talking about a paper loss right now of $4.4B.
That might sound like a lot but i'm not sure how significant it really is.
Also not an expert :) I agree it's a lot for a single fund. I guess I was assuming it wasn't just one player.
This actually happens all the time with meteoric rises, the company does a public offering to take advantage of the high price. VERY common amongst penny stocks or companies strapped for cash, as I would imagine Gamestop is pretty strapped due to covid and the ability to download games online.