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Yes. When the dust settles there are still 70M almost worthless original shares that will be held by someone. But in the meantime, there are 70M short shares t
by spiznnx 6y ago
Yes. When the dust settles there are still 70M almost worthless original shares that will be held by someone.
But in the meantime, there are 70M short shares that need to be rebought from the 140M original+loaned shares. The idea is that forcing closing out the short position will allow you to sell some at sky high prices, hopefully enough to cover the loss from the rest of the shares that must be inevitably bagheld.
100% of float or 100% of outstanding are not super significant inflection points, just very large ratios.
- Macha 6y agoHi everyone, thank you for joining our Gamestop company all hands, I'd like to introduce our new CEO and majority shareholder, soon-to-be bankrupt guy from reddit.
- bluGill 6y agoNot necessarily. Those shorts exist for a reason: someone thought that gamestop was a bad company. If they are right then the short position won't need to be bought back because at some point the bankruptcy court will decide that the share holders get nothing. At this point all trades on the stock are legally halted and so the IOUs are legally meaningless - anyone who owned stock gets nothing. Of course the above depends on the short holders to: be right; have the capital to not have to cover their shorts; and be willing to hold on for the ride. I'm not making bets on any of the above.