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In reply to the discussion: I know little-to-nothing about stock trading. Can someone please give me the "Dummie's" version of [View all]fishwax
(29,149 posts)6. great summary--I'd just add they "borrowed" so many shares they cornered the market on themselves
They short sold so many shares that there were very few shares left on the market to buy. So when the demand increased (as a result of the redditors buying in) the supply was very small (as a result of the hedge funds over-shorting), and so that put tremendous extra upward pressure on the price.
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I know little-to-nothing about stock trading. Can someone please give me the "Dummie's" version of [View all]
Progressive Jones
Jan 2021
OP
When it comes to trading stocks, you can take a short position on the direction of the stock.
Yavin4
Jan 2021
#1
great summary--I'd just add they "borrowed" so many shares they cornered the market on themselves
fishwax
Jan 2021
#6
The point of my post was to explain short selling in terms that a lay person can understand
Yavin4
Jan 2021
#19
Thanks !!! A couple more questions that came to me while reading your explanation.
Progressive Jones
Jan 2021
#9
Thank you! I've been looking for an explanation of "this week" all week, but everywhere..
LAS14
Jan 2021
#26
Is the "bag of sugar" shares of stock, or cash against shares already owned by the borrower? nt
Progressive Jones
Jan 2021
#11
Thanks much. I don't know where I got "a few weeks" from, probably that came from some kind
progree
Jan 2021
#37
Thanks ! Yeah, I got that part. I just wasn't clear if the loan was cash or stock. Got it now. nt
Progressive Jones
Jan 2021
#42