The war between investers and institutions. Let me clear up the GameStop stock situation.

Image / ABC News

Now all the economic news is full of stocks. If you search Google Trends right now, everything is related to stocks. However, no one would have known why the shares of GameStop, a local game store, are soaring. I also do stocks, but yesterday I went back and forth between heaven and hell after buying GME stocks. Organizations that wanted to benefit from short selling were not able to handle GME's excessively high stock prices. Institutions should lower their stock prices because there is an event scheduled for Friday the 29th that expires GME call options. However, investors are no longer affected. Many investors are working together to prevent this, and there is now a war between institutions and investors.

Image / jioforme

the beginning of an incident

Let's take a look at the beginning of the incident. It removed the "buy" button of Short Selling's short squeeze-related stocks such as GME, AMC, and BB from securities trading apps such as Webull and Robin Hood, which are most used by U.S. investors. This is a big problem, a huge number of events that have broken the "rule" of American capitalism, which advocates fair trade so that it can only sell the same position as institutions. Robin Hood and others' positions blocked the buying button on the grounds that excessive speculation by investors could cause damage to users.

Stocks are like poker. More people invest close to gambling than those who invest in the future. This phenomenon is the same as eliminating races and allowing only "die" to be done. The reason for this phenomenon is that Robin Hood Securities App is a securities app business that operates with commissions from institutions instead of free trading fees from investors. Here, it is important what institution gives Robin Hood a fee. The very institutions are Melvin Capital and Citron, the main Short Selling organization, which means Robin Hood and the organization are one team.

Image / thebalance

Short Selling

Here, I would like to explain the word short selling for people who are not familiar with it. Short Selling refers to an institution borrowing and selling stocks that are likely to fall in price, and when the price of the shares goes down, it buys them back at a lower price than before and pays back the amount of shares it initially borrowed. Usually, organizations borrow huge amounts of stocks once they borrow them, so they sell them and then buy them again at a lower price to make a big profit. Many of these Short Selling organizations were benefiting from the exploitation of investors' money in this way. But this situation is different.

Now, investors are confronting institutions. To tell you the current situation, short selling agencies have to sell stocks and buy them at a low price again, but they can't buy them at a low price again because the prices of stocks are not falling. What would happen if the price of the stock that needs to be Short Selling does not go down even though it is exhausted? Short selling institutions eventually had to pay back by buying stocks at a higher price than they sold. There is a huge loss for short selling institutions, and there is an opportunity for investors to make huge gains.

Image / Google

investors' crisis

We will come back to the current situation of GME stocks. The stock market will open on the 28th. As of 10:00 a.m., institutions will begin to sell off huge amounts of stocks to lower their stock prices. It will have to lower the stock price for the seventh consecutive time and eventually smash the stock price. By 9:59 GME shares were close to $480 but the sell-off, which began 10 years later, led to an hour-long drop of 75 percent to $112.

By blocking the buying button, investors had to watch the situation without doing anything. What investors can do is to sell their stocks in panic or just watch their stocks. Stopping the buyout eliminated the force to defend the stock price decline, and short selling organizations were free to bombard investors with selling like they were laughing at them. The institution was taking away investors' money in a mean way without following fair rules.

u can’t sell houses u don’t own
u can’t sell cars u don’t own
but
u *can* sell stock u don’t own!?
this is bs – shorting is a scam
legal only for vestigial reasons

— Elon Musk (@elonmusk) January 28, 2021

Overcome a crisis.

Investors were being subjected to institutions like this. However, stock prices began to rise again after 11 p.m. The stock price, which had risen from $112 to $250, was not just looking at institutions. They began to lower their stock prices through a stock selling spree. However, as soon as a U.S. congressman posted a tweet suggesting an investigation into GME's deletion of the buying button, WeBull and Robin Hood began to activate the buying button again. Stocks rebounded as soon as the buying button was activated.

So far, institutions are trying to lower stock prices, and investors are blocking them. Elon Musk, who suffered a lot from short selling, posted a supporting tweet and many people are cheering GME's short selling situation to lead investors to victory.

Why is this case controversial?

This situation is not the essence of the problem simply by investing speculative investment in GME. You should not think only of superficial problems. The essence of this situation is that the stark behavior of short selling institutions that "manipulate" and "deceive" the fair rules and systems of capitalist games has been revealed to investors in real time. It has been revealed that short selling institutions can extort investors' money if they want to.

Of course, this is not the first time. Even during the 2008 financial crisis, short selling institutions made ridiculous derivatives and sold their stocks this way. And they attributed the crash to individuals. The biggest problem is that the institutions at the center of the financial crisis ended with no one punished. In other words, 13 years later, it is the institution that still reigns on the system without any change. The key problem of the current situation is that such unfair acts are being carried out openly on the surface of the water in the United States, which advocates fair competition and is the home of the capitalist system. If you have any more questions about this situation, please ask me in the comments. I will answer as kindly as I know. Thank you for reading my long article. I am writing about issues and 실시간 바카라사이트. If you are interested, please visit my website.