3 ms·
I think Porsche did something like that in 2008: http://radian.org/notebook/porsche http://radian.org/notebook/porsche
by prewett 17y ago
I think Porsche did something like that in 2008: http://radian.org/notebook/porsche http://radian.org/notebook/porsche
- eru 17y agoNot really. Porsche bought lots of VW stock either outright or as a call option. They also lent their VW stock to short-sellers. This way they `recycled' some of their VW stock, because those short-sellers sold to Porsche again. This allowed Porsche to build up a huge position, with only a few willing market participants as counter-parties. They also managed to short-squeeze the short-sellers. (http://en.wikipedia.org/wiki/Short_squeeze http://en.wikipedia.org/wiki/Short_squeeze) The grandparent post described a long-squeeze. (http://en.wikipedia.org/wiki/Long_squeeze http://en.wikipedia.org/wiki/Long_squeeze)