![]() ![]() On the opposing “side” so to speak are users of the subreddit WallStreetBets and finance influencers on TikTok (or FinTok) who, through a combination of chaotic investing and savvy, predicted investors would try and short GameStop stock and made moves to profit from it. ![]() ![]() The idea wasn’t far-fetched given the spate of GameStop’s bad news ranging from store closures to the general health of stores during the COVID-19 pandemic. Several firms have shorted GameStop, including Citron Research, a short-seller specializing in bets that companies will fail. They’ll then return the 20 shares back to the original stock owner and pocket the extra $100. That stock could then lose value, and the investor can buy back 20 shares for $300. They can then sell the stock for a set price, let’s say 20 shares for $400. Short selling is a strategy where an investor will borrow stock in exchange for an IOU. ![]()
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