Although I have bought a handful of shares, I am not totally optimistic that it will work out as some are saying. The powers that be can totally halt trading on a stock or the entire market. The other thing that nobody has been able to explain to me is why the hedge funds don't just sell their holdings to a separate corporation and just let that corporation go bankrupt? That's the whole reason limited liability corporations exist, --right? -- to limit losses. Not an expert in this area, so people in the know can educate me.
The other thing that nobody has been able to explain to me is why the hedge funds don't just sell their holdings to a separate corporation and just let that corporation go bankrupt? That's the whole reason limited liability corporations exist, --right? -- to limit losses.
No, that would not work.
You don't get physical shares when you short. It's just an accounting entry at a brokerage firm.
You owe the shares. Borrow 100 shares and you have to pay back with 100 shares.
You can't just "move" the account to a corporation. The broker would still hold you responsible if there is a margin call that exceeds the value of the account.
If your idea would work, just buy a house, get a mortage, "move" the mortgage to a corporation, bankrupt the corporation, and ... abracadabra!
Although I have bought a handful of shares, I am not totally optimistic that it will work out as some are saying. The powers that be can totally halt trading on a stock or the entire market. The other thing that nobody has been able to explain to me is why the hedge funds don't just sell their holdings to a separate corporation and just let that corporation go bankrupt? That's the whole reason limited liability corporations exist, --right? -- to limit losses. Not an expert in this area, so people in the know can educate me.
No, that would not work.
You don't get physical shares when you short. It's just an accounting entry at a brokerage firm.
You owe the shares. Borrow 100 shares and you have to pay back with 100 shares.
You can't just "move" the account to a corporation. The broker would still hold you responsible if there is a margin call that exceeds the value of the account.
If your idea would work, just buy a house, get a mortage, "move" the mortgage to a corporation, bankrupt the corporation, and ... abracadabra!
But it won't work. :-(