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>I think the general answer would be no, because at the end this fund would be a bagholder of $350 stock that's worth about $30, and when trying to get rid of i
by wolfretcrap 6y ago
>I think the general answer would be no, because at the end this fund would be a bagholder of $350 stock that's worth about $30, and when trying to get rid of it the price would crash down
Explain why they'll be holding $350 stock when the hedge fund who was shorting the stock has obligation to return all the stock that it borrowed. All these stocks will leave them, so why it matters if the stock is $350
- syrrim 6y agoGranting that I'm not really familiar with these things, it seems like the short sellers simply don't have the money to cover their positions at $350/share. They could try to buy back all the stocks, but they would run out of money long before they finished. Given that, they would most likely skip the crap and jump straight to declaring bankruptcy. So it doesn't seem like they really need to buy the stock at $350. At a lower price, where they could feasibly pay for it all, they might give it a go, but as it stands there is no chance. I haven't seen anyone else saying this, but I also don't see any way around it.