Re:GameStop Is Rage Against the Financial Machine
by teekert on Thursday January 28, 2021 @01:41AM
(#25938944)
But that buyer must be the shorter right? That's shorting, the shorter must return his borrowed stocks. So the people with the stock have a guaranteed buyer in the near future. That so dangerous about shorting, the losses are unbound. I'm just a noob correct me if I'm wrong.
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Re:GameStop Is Rage Against the Financial Machine
by silexia on Thursday January 28, 2021 @05:15PM
(#25950195)
The buyer could be anyone. But if the stock is so overpriced that no one will buy it except people forced to by margin calls, then what you are describing is a short squeeze... short squeezes are illegal.