With digital trading instead of trading with paper stocks, financial institutions are more easily able to create stocks out thin air and/or commit fraud.
Gamestop stock in January 2021 was shorted over about 140% of its total shares, which should be impossible and illegal. A short is borrowing a stock from someone else and selling it immediately on the bet that the price will go down but you have to give the stock back after a period of time or you start paying heavy fines.
Because of the stock was shorted over 100% of actual shares in exostence people went and bought the stock and held it because they knew the finance companies shorting it would need to get back the stock. This is called a short squeeze where the ones shorting bought up any GameStop stock on the market to give back the stock to people they borrowed from. This caused the price to balloon.
Robinhood famously (and illegally) shut down trading on their platform because the primary owners of Robinhood were the ones shorting GameStop. This was to stop the price from rising higher.
Even though the price went back down, the whole point of the video is to say that the shorts were never given back and that's why the price ballooned last week over 100%.
Many events happened with GameStop which caused people involved to.see how fraudulent this economic system is. Naked shorting, Dark Pools, there's so much you can get into and its nowhere near exhaustive in showing the flaws and corruption in our "capitalist free-market system".
I'm starting to think though that our society has been coaxed into a bunch of gamblers and I see it everywhere in real life this continuous conditioning for gambling. I sometimes wonder if we've been coaxed into this with the GameStop MOASS.
I haven't looked into GameStop that much since the end of the short squeeze so I don't know a lot and my opinion shouldn't matter to anyone reading it. An upcoming humongous short squeeze could very well be a monumentally important event that brings down the whole economy. It is interesting to look back on it
I still don't quite get it, but then I never could get the hang of stocks and such. I'm glad this is happening though.
With digital trading instead of trading with paper stocks, financial institutions are more easily able to create stocks out thin air and/or commit fraud.
Gamestop stock in January 2021 was shorted over about 140% of its total shares, which should be impossible and illegal. A short is borrowing a stock from someone else and selling it immediately on the bet that the price will go down but you have to give the stock back after a period of time or you start paying heavy fines.
Because of the stock was shorted over 100% of actual shares in exostence people went and bought the stock and held it because they knew the finance companies shorting it would need to get back the stock. This is called a short squeeze where the ones shorting bought up any GameStop stock on the market to give back the stock to people they borrowed from. This caused the price to balloon.
Robinhood famously (and illegally) shut down trading on their platform because the primary owners of Robinhood were the ones shorting GameStop. This was to stop the price from rising higher.
Even though the price went back down, the whole point of the video is to say that the shorts were never given back and that's why the price ballooned last week over 100%.
Many events happened with GameStop which caused people involved to.see how fraudulent this economic system is. Naked shorting, Dark Pools, there's so much you can get into and its nowhere near exhaustive in showing the flaws and corruption in our "capitalist free-market system".
I'm starting to think though that our society has been coaxed into a bunch of gamblers and I see it everywhere in real life this continuous conditioning for gambling. I sometimes wonder if we've been coaxed into this with the GameStop MOASS.
I haven't looked into GameStop that much since the end of the short squeeze so I don't know a lot and my opinion shouldn't matter to anyone reading it. An upcoming humongous short squeeze could very well be a monumentally important event that brings down the whole economy. It is interesting to look back on it