?

Can someone explain this to someone who doesn’t know s*** about stocks? How come reddit fools buying up Gamestop stocks causes hedge fund kids to lose money?

What about MUH GUBERMENT? I thought it was a free market and the fittest survive? Instead you call for mommy state when s*** gets tough? Muh risk

Biden on the phone with spez telling them to shut down the reddits

What’s embarrassing is I still don’t understand what this means

🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀

Some hedge funds bet against stocks; they profit when the price falls. It's called short selling. It's counter-intuitive and very very risky.

Reddit neckbeards are pumping up the price of heavily shorted stocks.

to the moon!

So all they gotta do is keep the stock high and the hedge funds lose?

They are literally pumping "Meme stocks" like blockbuster, blackberry, Nokia for s***s and giggles

in the simplest way possible that doesn't get into technicalities:

• A few people on social media (mostly on /r/WSB) told people to buy into $GME (Gamestop's stock) because it was going to overflow in price.

• This cascaded into a lot of people buying into $GME.

• A handful of big investment firms predicted that it was a bubble, and shorted the stock, meaning they borrowed shares to immediately sell them. This is basically a bet that the price will dramatically fall soon.

How a short works:

Let's say you borrow stocks at $20, then sell them immediately. When the price drops to $10, you buy those stocks back. Return the borrowed stocks and keep in a profit.

• /r/WSB and other social media users realized this was happening, and pushed more and more people to keep buying into $GME, drastically increasing the price and causing massive losses to these investment firms.

• Now, these investment firms have their timed "contracts" coming up on the borrowed stocks, with increasing and increasing prices that don't have any signs of falling soon.

For reference, Gamestop stock was maybe $18 a share on a good day. It is now over $300 per share.

Not really. Hedge funds get panicky when the losses reach a certain threshold and backtrack.

Makes sense, thanks guys

Are the hedge funds invested in gme?

I thought hedge funds were private investing groups
how tf you bail them out for getting something wrong

No. Gamestop isn't a company with a bright future.

The opposite. Hedge funds were betting against growth in the share price and it went to the moon yesterday.

this just all a reminder that stocks are just fake business

as if anyone needed to be reminded that the stock market is fake lmaoo

Let's push AMC to the moon

It's the day traders making it inefficient.

its literally all just a bunch of made up s*** with no rhyme or reason. a bunch of ppl just manipulating money