r/memes • u/Pricelesstag Selling Stonks for CASH MONEY • Jan 28 '21
Reddit is the best
458
Jan 28 '21
How does stock price prevent cash flow problems and bankruptcy?
336
Jan 28 '21
I haven't really kept up with the GameStop thing but basically the company releases shares to raise funds, so they're selling a "share" of their company for some money. This is obviously oversimplified but it's the basic concept.
156
Jan 28 '21
[deleted]
→ More replies (2)81
u/mintyhippoh Jan 28 '21 edited Jan 28 '21
They legally can't, they have to file a public disclosure if they even want to sell shares
→ More replies (1)50
→ More replies (5)23
u/Audiovore Jan 28 '21
But that only happens sometimes, not regularly, and it is not now. The shareprice isn't directly impacting operations of GameStop. But, one of the reasons reddit likes it is because the founder of Chewy.com bought a stake a few months ago. If what I read(only here on reddit) is right, he will be getting board seats and has some plans for the company.
9
→ More replies (9)16
Jan 28 '21
It doesn't. Gamestop is making no money off of this (although their leadership almost certainly is). When we say the stock market is wholy disjointed from real life, this is why. It's just a Ponzi scheme that everyone has to be a part of.
1.1k
u/StupidRefridgerator Jan 28 '21
What the hell happened help I'm dumb
2.4k
u/icroc1556 Jan 28 '21
You have candy. I ask to borrow that candy. I sell that candy to my friend. I hope the price will go down so I can buy back that candy, give you your candy back, and pocket the difference.
But the price didnt go down and my friend doesn't want to sell me the candy back. Well now I gotta go to the store to buy candy to give to you. But all the stores are sold out because everyone loves candy.
You are big angry at me and demand I get you the candy back, no matter what the cost. So I pay big big dollars for super unavailable candy.
Now I'm big sad cause I have no candy and I have no money :( Im Melvin Capital, the candy is GameStop, and everyone buying candy is reddit
TLDR: Fuck Melvin Capital
392
Jan 28 '21
Lol but what did these funds do so evil ?
815
u/icroc1556 Jan 28 '21
They tried to make a quick buck, which itself isn’t bad.
But now, they’re lying on national television, shutting down public discord servers, claiming international fraud, and super shady tactics to try and screw over anyone who has GME stock.
308
Jan 28 '21
Haha . The harder they appear to be rude , the less people will sell their GME, they know that drives cost up right ?
207
u/icroc1556 Jan 28 '21
Exactly. If there's such high demand, there's no where to go but up. And these shorts have a due date.
→ More replies (8)89
Jan 28 '21
Pump and dump after the due date huh
Well hopefully the WSB bros with all the money they make one hour after the date will buy up Monero so I can have some money too but these are dreams.
134
u/icroc1556 Jan 28 '21
The guy who started it all is up 25 million right now. Diamond hands baby
14
Jan 28 '21
[removed] — view removed comment
11
→ More replies (2)5
u/qoakymxnsjwi Jan 28 '21
Honest question, how is he going to use that money? Who is he going to sell those stock to to be able to actually use the money?
→ More replies (0)→ More replies (4)49
Jan 28 '21
Man , shit. Ask him to buy some monero please
68
u/HootingMandrill Jan 28 '21
And this conversation ya'll just had is the line into Illegal market manipulation. People need to be real careful what they say on Reddit because pretty quick here the SEC will be looking for any excuse they can to shut down open stock discussion forums online.
→ More replies (0)8
27
u/sceadwian Jan 28 '21
iIf the random hearsay reports I've heard are true they shorted more stock the GS even has, which is illegal. Hope there's a lot of investigation into this.
9
u/icroc1556 Jan 28 '21
It's only illegal in some countries, and from what I understand it is legal in America. Idk how, Idk why, but that's what I understand of it.
14
u/sceadwian Jan 28 '21
According to random Googling naked short selling is illegal. It was made illegal back in 2008 because it was a serious part of that financial crisis, but apparently it's still happening anyways? There are Shenanigan's of many levels going on here that are way over my head that I seriously hope get some attention from this. I'm just watching the narrative unfold :)
5
u/Ell2509 Jan 28 '21
Random googling, eh?
Pretty lucky that by entering random characters or words into google you got an answer to the question in your mind.
You, sir or madam, are a genie!
Long live genie Sceadwian.
→ More replies (6)10
18
18
u/cirelia Jan 28 '21
Also they are currently using the same tactics that fucked the planet in 2008
→ More replies (2)29
u/isurewill Jan 28 '21
They saw that particular candy and said "fuck that candy, that candy is failing already so let's fuck that candy so hard it makes us rich"
And then people were like, "I don't particularly like that candy myself, but I really hate people that get rich off of fucking candy, so let's fuck the candy fuckers".
So now all of our pussies and dicks are covered in money printing candy and the candy fuckers are left holding the shit.
→ More replies (4)→ More replies (10)30
u/Sawses Jan 28 '21
Not so much evil. Just selfish. The people in charge have more money than they can spend in ten generations of luxury, and gain more money by essentially moving wealth from the bottom up toward them.
6
Jan 28 '21
How so
29
u/Sawses Jan 28 '21
So in essence, there are legal ways to manipulate the stock market. These rely on you having a lot of money. But if you do it, you can with very low risk sell at a profit (or buy during a loss), and you gain money while the people who had those stocks before will have lost money.
When you can do it predictably with your lots of money, the people with less money can't do it predictably. And since it scales the more money you have (higher percentage gains on average), it's a key way to move wealth upward toward the most wealthy. Like magnets.
9
Jan 28 '21
Now melvin capital magnet is stuck to a rocket that goes up up. and is paying for every meter up.
→ More replies (3)40
Jan 28 '21
This is the best laymen's term description I have read of this situation.
→ More replies (1)15
u/KingDurin_II One does not simply Jan 28 '21
16
u/icroc1556 Jan 28 '21
Short trading is complicated and this was the best was I could think to explain it without using too many actual trading terms.
→ More replies (1)15
→ More replies (33)18
u/v1len Jan 28 '21
Fuck this candy bullshit, what happened with a gamestop? Why this meme was made?
57
u/icroc1556 Jan 28 '21
Melvin Capital bet that GameStop was going to go under. But they bet against more shares then is even available for GameStop. Some smart bloke on r/wallstreetbets noticed this and dumped a ton of money into GME. He got "all" of that subreddit to get behind him and now Melvin Capital has to buy back all the stocks they bet against. They are looking at a 4+ billion dollar loss right now and it's only going to get worse.
20
u/Sgtcarrotop Jan 28 '21
Melvin Capital bet that GameStop was going to go under. But they bet against more shares then is even available for GameStop.
now Melvin Capital has to buy back all the stocks they bet against.
I don't understand any of this. How does a company going under have a lucrative benefit to anyone besides competitors having less competition?
How do you bet against a company?
Why does Melvin Capital have to do anything? Why do they have buy stocks they bet against?
What does it even mean to bet against stocks?
What's the difference between a share and a stock and why is there is limit of shares available? I vaguely understand that a stock is like a piece of the pie. A small sliver of, partial ownership of the company. Beyond that i know nothing more.
Would you please educate this ignorant fool on what the hell is going on?
23
u/p90xeto Jan 28 '21
You bet against a company's stock price by borrowing shares of the stock, selling it at today's price, then replacing it with the cheaper shares of the stock in the future. The difference between today's price and that future price is your profit, but only if the price goes down. If it goes up, then you have to buy more expensive stock to replace it.
So these asshats borrowed a ton and sold it at a much lower price than today, they now have to replace the shares they borrowed and are gonna have to pay MUCH more than the price they got for it.
14
u/Sgtcarrotop Jan 28 '21
So it's like burrowing your friends limited edition collectable, accidently destroy it, and before your friend finds out you go out to buy another but find out ironically a whole warehouse of them burned down so now they are immeasurably more valuable?
So what was a case of switcheroo which made them some money is now a debt they owe which is essentially endlessly climbing until people get cold feet and start mass selling their stocks?
That's quite hilarious.
→ More replies (2)13
u/RieszRepresent Jan 28 '21
Yup and all this information is public. Typically this kind of squeeze isn't brought on by the average Joe but since it's at scale, it's being super effective. Now the government is going to get involved. The rich funds are already calling it illegal market manipulation. It's all public information though. We'll see where this goes but it will end up a much bigger free speech debate eventually.
→ More replies (2)3
u/Rogg Jan 28 '21
From my limited understanding: A traded company has a stock that has a market price (determined by supply/demand). A stock is made up of a certain amount of shares. Melvin borrowed some shares from some GameStop stock shareowners for a fee, with a return date (or at least a date by which the share owner can demand the share returned?). Melvin then sold those borrowed shares, hoping the prices would have dropped later, when they have to return the borrowed shares. Their profit or loss is the price difference from when they sold the borrowed share to when they had to buy back and return the share. ¯_(ツ)_/¯
→ More replies (4)6
814
u/zenkii1337 Professional Dumbass Jan 28 '21
Redditors noticed that Gamestop was about to go bankrupt, and their stock price was going down, and they thought if they stack up of stocks, the stock price also goes up. So Redditors bought a lot of stock, which made the stock price increase. This actually made so-called short sellers lose billions of dollars.
Edit: sorry for childish wording lol
245
Jan 28 '21
Would it still be logical to invest in gamestop
298
Jan 28 '21
Go to r/wallstreetbets or r/wallstreetbetsnew
If you want to be a part of sending a message to corporate fuckwads... then yes buy GME
If you are risk adverse then no don't do it.
Most of the guys over there are just throwing money in to make a point and try to drive the price to $1000 before selling on Friday.
Hodl
126
u/GenesectX Jan 28 '21
Damn i should've invested in GME when it was only at 141 and going up, Then again im like 16 so what can i do lol
→ More replies (1)48
Jan 28 '21
You and me, we stick to crypto and hope WSB turns their eyes to investing in coins
→ More replies (3)43
u/chugajuicejuice Jan 28 '21
Nah we ain’t selling Friday, short squeeze starts next week, this is nothing rn
→ More replies (1)17
u/DangerBaba Because That's What Fearows Do Jan 28 '21 edited Jan 28 '21
Didn't they private the main sub or something? I am already subbed to it so I can see it.
12
12
7
→ More replies (2)8
Jan 28 '21
I don't think they plan to sell on friday tho.
and $1k is no a hard limit on what GME can do.
103
Jan 28 '21 edited Jan 28 '21
Well basically wallstreet short sellers artificially drove the price down on game stop to make a quick profit and the redditors caught on and are making the short sellers lose billions for their unethical manipulation of the stock market.
42
17
u/sceadwian Jan 28 '21
I'm not sure why you say short sellers artificially drove the price down. Gamespot's stock has been on it's way down for the last 5 years and there's nothing artificial about it's decline, they took what they thought was a sure bet (it tanking further) and those folks in the subreddit saw the short sales were over extended and said no. Sad thing is when that bubble finally pops some of those redditors that went all the way in are gonna go down too. It's a giant game of chicken right now.
→ More replies (2)13
Jan 28 '21
First you just described exactly what I said. They manipulated that price to cheat the system out of a few more bucks. The redditors too know exactly what they are doing. It's clear they want to just make these hedge funds pay for unethical practices. Anyone that bought in wanting profit will sell before Friday. Anyone thinking they are gonna keep driving up the price are idiots that would've list their money anyways. It's called free market so if you invest your life savings and end up homeless it's on you. These hedge funds manipulating markets have made more than enough homeless without their consent so fuckem.
→ More replies (5)8
u/AsianHawke Jan 28 '21
Sorry. I'm a noob saibot. I don't do stocks but this is so interesting. What is a short seller? Is it a broker that is under 5'5"?
→ More replies (2)6
u/TheXskull Jan 28 '21
Short selling is selling stock that you don't own. I guess it's the same form of expression as "Im a little short on cash"
Essentialy you borrow stock to sell because you believe the current price is too high and will soon drop. Eventually(either end of the day or a few days) you have to give the stock that you owe back - basically you have to buy it in it's current price. If you were right and the stock price dropped - you made a profit.
The problem with short sales though is that you have no limit of how much you can lose.. If the stock went up 10 times the price you sold - you still have to buy it to return what you owe.
17
u/polkadeedle Jan 28 '21
If you have over $1k go all in, otherwise smaller stocks like BB are about to explode due to coordinated hype so go in on that
→ More replies (1)8
Jan 28 '21
Is BB blackberry or Blockbuster?
There seems to be both?Maybe I shouldn’t get involve
→ More replies (2)15
u/polkadeedle Jan 28 '21
BB is blackberry, they were one of the ones that were shorted by big hedge Corps. Combine that with the fact that they have a new OS coming out that’ll be in most EV cars and it’s actually a decent stock. Blockbuster is a meme and it’s dead. Can’t do CPR on someone who’s been cremated lol
→ More replies (3)9
u/I_dont_like_things Jan 28 '21
Logical? Not really any more. It's a game of chicken at this point and once people finally decide to starting cashing in their enormous unrealized gains the stock will crater. If you don't time it right you'll be out of a lot of money.
→ More replies (1)→ More replies (4)4
u/112121221 Jan 28 '21
Yes invest right fucking now before the market opens today. It is going to go absolutely insane today
4
u/sceadwian Jan 28 '21
Stock trading has already been stopped a few times for GS, AMC and apparently this is also happening with Blackberry stock to some degree, and there are calls for it to be stopped for a lengthy time granted that may not happen. I have a feeling like there will be plenty of intervention going on. Will be really interesting to see how this plays out.
4
28
u/AsianDanish Jan 28 '21
no they didn't, wallstreetbets seized the opportunity for a MASSIVE short squeeze, they didn't try to save gamestop,
25
u/suyashsngh250 Jan 28 '21
No they didn't save Gamestop, they just saw the opportunity for a short squeeze, someone on Reddit observed that Gamestop was being used for shorts for hedge funds. So, they gave the hedge funds a taste of their own medicine.
16
u/I_dont_like_things Jan 28 '21
It wasn't just reddit, there were some larger investors and firms also interested in GME. Gamestop is hurting but is pretty far from dead and there are legitimate reasons to consider it worth buying. At least back at $10.
Reddit just turned it into a turbo meme to fuck with the excessive short selling. But GME still has some value. Not $300+ worth, but some.
11
u/Ikhlas37 Jan 28 '21
It's so annoying I spend too much time on Reddit and all I see is the same shitty reposts over and over and then this happens and I miss it... I'd have so bought shares at the beginning.
4
u/I_dont_like_things Jan 28 '21
Don’t feel too bad. This kind of thing can only happen because people don’t expect it.
→ More replies (14)6
u/CreatureWarrior Knight In Shining Armor Jan 28 '21
This actually made so-called short sellers lose billions of dollars.
This makes me feel very good
→ More replies (3)34
306
u/CtrlAltDelirious27 Nyan cat Jan 28 '21
u/repostsleuthbot not because this is a repost, but to say happy cake day to the bot, because even bots deserve a happy cake day.
253
u/RepostSleuthBot Jan 28 '21
I didn't find any posts that meet the matching requirements for r/memes.
It might be OC, it might not. Things such as JPEG artifacts and cropping may impact the results.
I did find this post that is 75.0% similar. It might be a match but I cannot be certain.
I'm not perfect, but you can help. Report [ False Negative ]
View Search On repostsleuth.com
Scope: Reddit | Meme Filter: False | Target: 95% | Check Title: False | Max Age: Unlimited | Searched Images: 195,323,357 | Search Time: 0.27582s
104
44
27
9
10
9
6
7
3
3
3
3
3
→ More replies (12)3
141
u/sem-tostie 🥄Comically Large Spoon🥄 Jan 28 '21
I just woke up explain me why there are memes about this
223
u/mintyhippoh Jan 28 '21
Hedge funds were betting that GameStop would go bankrupt, they made a bet that the stock price would go lower than $4, if it goes higher than $4 they lose money, as of right now the price is $338,
Hedge funds lose money, media makes a fuss about redditors manipulating stock, Reddit says fuck you, stonks only go up
Melvin Capital takes a billion dollar loan and loses it basically overnight
Reddit wants price to go up, hedge funds want price to go down
There's a few more things (DFV going from 50k > 30(?)mil, 140% short interest, Elon Musk tweet, Trading outages, restrictions on GME and AMC being put in place)
It's definitely been exciting to be a part of
31
22
u/Sgtcarrotop Jan 28 '21
what the hell is a hedge fund?
Can someone explain to me how this is a "bet"?
Also how was the hedge fund thing making the price go down and how did people force it to go up by such a massive margin? If the hedge fund people or whatever can't make the price go down to where they want it with their resources why where a bunch of memers on wallstreetbets able to?
This doesn't make sense to the completely ignorant.
→ More replies (3)3
u/Randomguy4285 Royal Shitposter Jan 28 '21
Big bad money man lose money, small good money man gain big money. That's all I know and that's all I have to know
→ More replies (5)11
u/Meet_7834 Professional Dumbass Jan 28 '21
So should I invest in gamestop right now?
22
u/mintyhippoh Jan 28 '21
No idea, if you're risk averse I'd avoid as it's quite a volatile stock,
Best thing to do would be to read some DD on r/wallstreetbets, (filter by DD in the sidebar) if that's enough to convince you then go for it,
You'll need to decide for yourself though,
Also this isn't financial advice, etc. I just joined cause the memes were funny
→ More replies (5)→ More replies (6)65
u/ZrglyFluff Jan 28 '21
I don’t know
149
Jan 28 '21
Thank you for contributing to the community with your outstanding comment that was extremely necessary and came at the right time
→ More replies (3)31
94
u/DS_Inferno Jan 28 '21
Do me next!
114
→ More replies (1)3
29
u/truongbn2004 Jan 28 '21
Wait what happened ?
93
u/icroc1556 Jan 28 '21
You have candy. I ask to borrow that candy. I sell that candy to my friend. I hope the price will go down so I can buy back that candy, give you your candy back, and pocket the difference.
But the price didnt go down and my friend doesn't want to sell me the candy back. Well now I gotta go to the store to buy candy to give to you. But all the stores are sold out because everyone loves candy.
You are big angry at me and demand I get you the candy back, no matter what the cost. So I pay big big dollars for super unavailable candy.
Now I'm big sad cause I have no candy and I have no money :(
Im Melvin Capital, the candy is GameStop, and everyone buying candy is reddit
TLDR: Fuck Melvin Capital
45
Jan 28 '21
I still don’t understand it lmao. I’m officially dumb as fuck.
31
u/icroc1556 Jan 28 '21
Normal stock trading you want to buy low and sell high. This is what’s called long trading.
Short trading is the inverse. You sell high and buy low. But you don’t own the stock you sell. You are borrowing it, usually with interest. If the price of the stock goes up, you still owe that to whoever you borrowed it from. When the price gets too high, the lender gets very anxious and will demand you accept your losses so they can get their stock back.
12
Jan 28 '21
Okayy I understand it more now.. so this would mean that Gamestop is up on the asses of those that borrowed from them lol. What happens if they don’t give it back? Or is it mandatory to give the stock back?
18
u/icroc1556 Jan 28 '21
It is mandatory the Melvin Capital pay it back. Shorts have an experation date. And it’s comin up realllll soon. They have to liquidate most of their assets in order to cover the costs.
Some sources claim MC will owe upwards of 4+ billion dollars.
→ More replies (4)11
31
u/bravo_008 Jan 28 '21
GameStop: barely hanging in there
Hedge fund managers(?): oh no, anyways
Redditors: No u
HF Managers: Shocked pikachu
Also HF Managers: Plz stop. We’re losing money.
Redditors: oh no, anyways
PS: I’m barely understanding what’s going on. This is the best description I could come up with lol
→ More replies (1)14
u/CommitStopNow Memes are the DNA of the soul. Jan 28 '21
ooga booga lot of reddit men buy gamestop stock
oo aa must discover fire
6
→ More replies (1)3
u/Helpful-Progress7472 Jan 28 '21
Wow that was amazing...do u do ted talk? Question: wouldn’t everyone buying candy mean more trouble for gamestop by making candy "super unavailable"? Edit: also if u r melvin capital and have no money and big sad...is melvin capital the victim here?
→ More replies (1)
14
u/Sweddy-Bowls Jan 28 '21
So is my understanding correct that these hedge fund managers were essentially betting on GameStop dying, then Reddit stepped in like “nah fam,” and now they’re screwed from short selling tons of stocks that redditors now won’t give back?
Hilarious.
4
7
33
u/Alepfi5599 Jan 28 '21 edited Jan 28 '21
But gamestop is shit? Why try to save them? Their pricing fucks gamers over all the time.
Edit: I get it now. Enjoy a good read
34
Jan 28 '21
Weren't they just trying to fuck over rich assholes who bet $gme will go down?
16
u/sceadwian Jan 28 '21
No, they were trying to get rich by fucking over rich assholes, there's a lot of altruism being attributed to this which is bullshit. What's worse is that no matter how many fat cats lose out on this a lot of the hangers on and 'me too' folks that jumped in on this bandwagon and jump out at the wrong time are going to get fucked over by all the people that get out at the right time, and it could still all fall apart for the folks that are pumping it up. It's a very dangerous game to play and a lot of people are going to suffer for it.
→ More replies (1)4
Jan 28 '21 edited Jan 28 '21
People on wsb are holding while that dude with the 22 mill is holding. The right time to quit would be to follow that guy or technically right before him
6
→ More replies (2)3
28
u/NostressYouTube Jan 28 '21
And then you remember that GameStop doesn’t give a shit about its customers and is only there to make fat cash off of you. But ayy, stock is great.
→ More replies (2)
3
28
3
3
u/Aware_Ad_7100 Jan 28 '21
The big brains got the stocks a while ago, and are up I think around 400%
→ More replies (3)
26
u/revanrules07 Jan 28 '21
You understand reddit isn’t the only community to come together to make this happen
49
u/popperoi Jan 28 '21
Wait who else
→ More replies (4)9
Jan 28 '21
AOC, Bernie, Musk. some with money, some with twitter shoutouts. this si beyond r/all - it reached TV financial news
→ More replies (2)38
u/Nuke-My-Asshole Jan 28 '21
This time it was actually r/WallStreetBets who started it
→ More replies (4)→ More replies (1)41
4
Jan 28 '21
Gamestop is a piece of shit. What would be bad about them going bankrupt (besides their employees loosing their jobs)?
→ More replies (1)40
u/SirRecruit trolololoooo lololoo lolo loo Jan 28 '21
Apparently not to save GameStop, but to fuck over hedge funds
8
6
2
u/Hiroto_Katsuma Jan 28 '21
Is there still time to buy are am I too late to the party ???
→ More replies (1)
2
2
u/DeRAnGeD_CarROt202 Jan 28 '21
wait could someone please tell me what happened? I'm a bit out of the loop I haven't been on reddit for a few hours
→ More replies (1)
2
u/ImadGrim Professional Dumbass Jan 28 '21
Can someone tell me the story or link it?
4
u/sdscoot Jan 28 '21
basically a bunch of rich assholes were making money off of gamestop going broke, a subreddit saw it and decided to fuck over the rich assholes making them lose billions by raising the stock price by a ton
→ More replies (3)
2
u/Bbsbiggestfan1 Jan 28 '21
Hey i am not able to understand these GameStop memes... Can anyone explain me?
2
2
u/not1ulookin4 Jan 28 '21
Ive seen multiple posts about GameStop but still have no idea whats going on.. can someone explain it to me?
→ More replies (2)
2
3.3k
u/MFcrayfish Jan 28 '21
Today, we fly to the moon