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> if all else fails, and a fund can't buy back the 50,000 shares it owes some brokerage, that fund doesn't have to buy them back. They can just declare bankrupt
by Rapzid 6y ago
> if all else fails, and a fund can't buy back the 50,000 shares it owes some brokerage, that fund doesn't have to buy them back. They can just declare bankruptcy.
If that's true wouldn't it incentivize the brokerages to help the funds weather the storm? Everyone can just wait it out till the stock crashes back and instead of sticking it to the man WSB just emptied their pockets into the mans accounts..
- northern-lights 6y agoThey may not do that because they are more risk averse than WSB. WSB can distribute losses over individuals and can tolerate, hedge funds probably can't. And it goes without saying - WSB can remain retarded longer.