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Hey Nerds: Blockchain

One of the main reasons this happened is because the Reddit guys discovered that hedge funders had "borrowed" so many shares of Gamestop to short that around 140% of Gamestop stocks were being shorted. Which is of course 40% more than shares of this company that actually exist.
 
axlsalinger said:
One of the main reasons this happened is because the Reddit guys discovered that hedge funders had "borrowed" so many shares of Gamestop to short that around 140% of Gamestop stocks were being shorted. Which is of course 40% more than shares of this company that actually exist.
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I had a client way back in the day who ran an OTC gold mining company. All he ever talked about, obsessively, was "naked shorting".

Calm down, Presty, it wasn't people shorting with their pants off, but rather shorting over and above the total number of outstanding capital stock.

And really, this is obscene and criminal on so many levels. There's no basis for allowing borrowing of more shares than exist. They need to regulate this out of existence now.
 
LeafOfFaith said:
In other words they shorted $2B of GME, while having $4B in assets overall, and lost everything on GME and now have $2B overall?
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GME went up 30x. So you don’t need much to lose 2B
I’m not sure they are out of their position.
 
LeafOfFaith said:
I had a client way back in the day who ran an OTC gold mining company. All he ever talked about, obsessively, was "naked shorting".

Calm down, Presty, it wasn't people shorting with their pants off, but rather shorting over and above the total number of outstanding capital stock.

And really, this is obscene and criminal on so many levels. There's no basis for allowing borrowing of more shares than exist. They need to regulate this out of existence now.
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Wait so trading jargon actually exists? Interesting development!
 
It's a helluva gamble. If you really believe a company is about to go bankrupt, you borrow and sell shares and then don't have to pay anything back once they become worthless.
 
Part of the reason naked shorting happens is because it’s so profitable for brokers

Preston shorts 1 share of GME
I take the other side of that bet and buy that share that he just sold
Then my broker lends that share to LOF at a 30% interest rate, so he can short it
 
axlsalinger said:
It's a helluva gamble. If you really believe a company is about to go bankrupt, you borrow and sell shares and then don't have to pay anything back once they become worthless.
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And of course, your gains are capped at 100%.
If you short a $10 stock, you can only make $10 max....but if it pulls a GME or a TSLA, mamma mia
 
I think naked shorting is criminal activity.

Shorting itself I'm not even a proponent of, frankly.

Puts make sense, but shorting is bullshit.
 
LeafOfFaith said:
I think naked shorting is criminal activity.

Shorting itself I'm not even a proponent of, frankly.

Puts make sense, but shorting is bullshit.
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nah, shorting is fine. But I agree that nude shorting should be illegal
 
It’s like, you’re not even borrowing the share in the naked short situation. You’re literally just declaring shorting, like Michael Scott declared bankruptcy, and making a financial bet with no actual basis to make it.
 
LeafOfFaith said:
Sure trading jargon exists, but its existence does not validate that of non-trading jargon like hoarding!
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Folks. We spent hours gaslighting me into thinking I was crazy. A simple Google search shows that this is a term widely used in the trading community. A simple apology would suffice. No sense in digging your heels in at this stage. It's fine. I won't hold it against you.
 
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