Discussion » Statements » Rosie's Corner » Selling short. Hedging. Apparently billions of bucks are lost due to gambling that a stock would go down and it SHOT UP! Gamestop?

Selling short. Hedging. Apparently billions of bucks are lost due to gambling that a stock would go down and it SHOT UP! Gamestop?

I don't understand it.

How do you buy a stock and not pay for its value when you guy it?

Do all hedged funds belong to investors or do the brokers hedge for themselves?

Is that legal?

Makes no sense. Any of you hedged and lost billions? If that makes no sense apologies. When you don't know what you are talking about making sense is particularly rare.

Posted - February 2, 2021

Responses


  • 34266
    I do get it either.  But love that the average guy took down the hedgefunds.  

    Hope it continues. 
      February 2, 2021 9:29 AM MST
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  • 3719
    I am no socialist and I do not pretend to understand the world of high finance, though I still have a small set of employee-shares from a past employer. It returns a modest nest-egg each year.

    I am not too bothered about people gambling their own money on the stock-exchange if they do so responsibly, as investors who understand what they are gambling on - other people's assets and livelihoods.

    What concerns me much more is the mere gamblers. Buying and selling games-company shares is one thing; but distorting the values of commodities and industries by mere bedroom gamblers who do not understand and care about those, the livelihoods they support directly, their customers and the genuine long-term investors in them like insurers and pension-funds; is bad for everyone.

    Silver, like all metals, has a value far beyond just rare and pretty. It is very important in a wide range of technical applications and artificially inflating such materials' costs for a quick buck in a market rendered unstable by that, is wrong.
      February 4, 2021 10:49 AM MST
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  • 113301
    Thank you for your thoughtful and informative reply Durdle. "Bedroom gamblers"? I have not heard that before. Are they insincere or manipulaters or something else? The world of high finance of necessity is probably rife with corruption. Money talks and so they get away with it. One day maybe folks won't be so cold and selfish? Hahahahaha. No. Not happening. SIGH. :)
      February 7, 2021 2:39 AM MST
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