Class Action Lawsuit Filed Against Robinhood

Re:Class Action Lawsuit Filed Against Robinhood by throwaway0a5e on Thursday January 28, 2021 @03:11PM (#25948331)

This is the "buy high sell never" part of the meme.

Imagine there are only two shares GME.

You buy two GME for $1ea. Two short sellers needs 1 GME each lest they hemorrhage money on fees. You loudly announce your plan to hold half your GME forever. The short sellers trip over each other to pay you stupid money for the one GME you are selling. You then sit on the other GME for awhile, maybe sell it in a year or two for a buck. In any case despite buying two and selling one you've made a ton of profit.

Now scale this up to several million people.

[ Parent | on HN ]

Re:Class Action Lawsuit Filed Against Robinhood by tonfa on Thursday January 28, 2021 @03:34PM (#25948732)

> Now scale this up to several million people.

And many more shares, most of them hold by corporate and institutions (some of those institutions will be happy to lend shares as well). Also more shares can be issued.

[ Parent | on HN ]