Re:Class Action Lawsuit Filed Against Robinhood
by vkou on Thursday January 28, 2021 @06:15PM
(#25950909)
> Shorting in and of itself has a builtin risk/reward scenario. You're betting on the company's future performance.
No, you're betting on the stock's future performance, not the company's future performance. There's an ocean of difference between the two.
If the company does poorly, but the stock price rises, or stays the same (Say, because we're in the middle of a COVID recession, and the printing presses are working overtime), you're going to lose a lot of money.
No, you're betting on the stock's future performance, not the company's future performance. There's an ocean of difference between the two.
If the company does poorly, but the stock price rises, or stays the same (Say, because we're in the middle of a COVID recession, and the printing presses are working overtime), you're going to lose a lot of money.