Love this guy -- but let me help with the short sale explanation. His SUCKED. Step1: Hedge Fund BORROWS stock shares Step 2: Hedge fund immediately SELLS shares. Step 3: Stock price PRESUMABLY goes down. Step 4: Hedge Fund buys back shares at LOWER PRICE and repays those it borrowed. Net profit is the amount the stock price fell. INSTEAD THE PRICE WENT UP -- HEDGE FUND CAN'T REPLACE BORROWED SHARES -- UNLIMITED LOSSES AS PRICE CLIMBS -- SUICIDE WEEKEND
Love this guy -- but let me help with the short sale explanation. His SUCKED. Step1: Hedge Fund BORROWS stock shares Step 2: Hedge fund immediately SELLS shares. Step 3: Stock price PRESUMABLY goes down. Step 4: Hedge Fund buys back shares at LOWER PRICE and repays those it borrowed. Net profit is the amount the stock price fell. INSTEAD THE PRICE WENT UP -- HEDGE FUND CAN'T REPLACE BORROWED SHARES -- UNLIMITED LOSSES AS PRICE CLIMBS -- SUICIDE WEEKEND
Nice summary. The second part around 25min mark is about CCP going back to Republic.