Yeah. What I’m saying is that I don’t see how “covered” shorts aren’t made-up stocks as well.
Fidelity loans 10 shares from Customer A to Hedgie B. Hedgie B sells them to Investor C.
At this point, even though Fidelity “owns” the covers for the 10 shares, there are technically 20 shares outstanding as Customer A still “owns” his shares at Fidelity. If Customer A sells those shares, Fidelity is obligated to buy 10 more shares to cover to prevent FTD, but that doesn’t change that there are still 20 shares instead of 10.
Even once the short is closed out, how do those additional 10 shares stop existing?
Am I missing something here? Basically what’s the destructive process for the 10 shares that don’t exist after the short is closed, and how are there not 2x as many shares for sure while it’s open?
Imo there is no valid justification for short sales other than price manipulation. Full stop.
Right, I think my concern is for those who have cheated the system from the beginning why are we to think they will all fall into line and play by the rules. Who controls the price of the stock? Supply demand, market makers...again lots of grey area there.
However, with that being said if WH are in control then putting my stock in them. If they arn't, then nothing has changed and we are in same plight we've always been in.
In the end I do think MOASS will happen but as its been stated "timing is everything" so I believe it will come when we least expect it.
There are so many references to watching a movie. Good guys win when all seems lost; maybe MOASS will happen when we least expect it too.
Oh, I absolutely agree. I'm not one for manipulating a company through their stocks in any way or any type of manipulation. They've made the process so complicated for smooth brains, they are basically able to do whatever they want. That should not be happening. My apologies if I sounded as if I thought shorting was okay, I was just sharing the "definitions"
Yeah. What I’m saying is that I don’t see how “covered” shorts aren’t made-up stocks as well.
Fidelity loans 10 shares from Customer A to Hedgie B. Hedgie B sells them to Investor C.
At this point, even though Fidelity “owns” the covers for the 10 shares, there are technically 20 shares outstanding as Customer A still “owns” his shares at Fidelity. If Customer A sells those shares, Fidelity is obligated to buy 10 more shares to cover to prevent FTD, but that doesn’t change that there are still 20 shares instead of 10.
Even once the short is closed out, how do those additional 10 shares stop existing?
Am I missing something here? Basically what’s the destructive process for the 10 shares that don’t exist after the short is closed, and how are there not 2x as many shares for sure while it’s open?
Imo there is no valid justification for short sales other than price manipulation. Full stop.
Right, I think my concern is for those who have cheated the system from the beginning why are we to think they will all fall into line and play by the rules. Who controls the price of the stock? Supply demand, market makers...again lots of grey area there.
However, with that being said if WH are in control then putting my stock in them. If they arn't, then nothing has changed and we are in same plight we've always been in. In the end I do think MOASS will happen but as its been stated "timing is everything" so I believe it will come when we least expect it. There are so many references to watching a movie. Good guys win when all seems lost; maybe MOASS will happen when we least expect it too.
Oh, I absolutely agree. I'm not one for manipulating a company through their stocks in any way or any type of manipulation. They've made the process so complicated for smooth brains, they are basically able to do whatever they want. That should not be happening. My apologies if I sounded as if I thought shorting was okay, I was just sharing the "definitions"
Not at all, was just clarifying that my opinion applies to both types of shorts.