Who here doesn't understand shorting stocks?

Go ahead

I didn't know until the last couple of years.

I'll say this. The financial system is intentionally over complex and convoluted. There are too many layers that exist only to fuck somebody over, though when "officially" described sound like some ingenious sure fire way to keep everything flowing smoothly.

ok Let's use a farmers market analogy.

The brokers are the farmers stands where they sell the produce.


someone who shorts a stock is someone that comes to one of these stands and offers to take a shitload of products off their hands on consignment.

The stock shorter now shorts the market on lemons for example.By offering a shitload of lemons at a lower price he can outcompete anyone else selling lemons and FORCE them to lower their price because more expensive shit doesn't sell when you can find the same thing cheaper from someone else.

This is the gamble the one shorting the stock takes, if he can sell enough lemons at his intial price and then keep selling at lower increments as the competition heats up then he is well on his way to cratering the price of the lemons to their lowest possible point and thus only owing the original vendor the price the lemons are now worth by the time Friday rolls around. (let's say they made this deal that previous monday)

NOW if in the middle of this nefarious scheme people come into the market and start buying up all the lemons guess what happens to the price of lemon at that point.....

this starts driving the price back up and now the shorter is ROYALLY FUCKED if it goes over the price he got the lemons on consignment for.

THIS is what happened with GME and these hedge funds.



Last Edited by BallsDeeper on 01/29/2021 07:07 PM

it's financial sophistry where two wolves and one sheep get to vote on what's for dinner. Publicly traded companies are the sheep they fatten up before the slaughter.

You're analogy isn't good.

You Don't sell stock for less than the prevailing price. How can you make money?

Now esplain naked shorts using the same anaolgy

you don't until you drive the price down, now why you get to "borrow" these stocks and then get to pay the lower market value at closing is one of those things that well you know......

that's simply fucking lying and saying you have more lemons to sell than you actually do.

snort socks?

It sounds like it should be illegal.

short stockings?

one YOU don't DRIVE the price down. You wait and hope it goes down.

What about borrowing the shares to short and naked shorting and what about the SHOW list made famous by the guy that started overstock.com what about the clearing house. You really don't know what you are talking about.

Not really. If done legally it drives price discovery.