Conversation

Notices

1. mia (mia@freespeechextremist.com)'s status on Sunday, 10-Sep-2023 03:56:21 JST mia
   Sometimes I remember why these creatures deserve death.
   2023-05-05-102545_772x291_scrot.png
   2023-05-05-102001_767x311_scrot.png
   • LS (lain@lain.com)'s status on Sunday, 10-Sep-2023 03:56:19 JST LS

     in reply to

     • Moon
     @Moon @mia these shorts (naked or not) are really not an issue as long as it's possible to simply short squeeze them out, as the wallstreetbet redditors did. It's self-correcting unless one half of the transaction is made illegal.
     
     Or in other words, if you think people are trying to push the valuation of a company down beyond a reasonable amount, you can just buy stock in that company 'for cheap'. That price discovery is the reason why speculators can make money.
   • Moon (moon@shitposter.club)'s status on Sunday, 10-Sep-2023 03:56:20 JST Moon

     in reply to
     @mia why isn't naked short selling prosecuted
   • LS (lain@lain.com)'s status on Sunday, 10-Sep-2023 04:20:57 JST LS

     in reply to

     • Moon
     @Moon @mia shorting is just the missing quadrant in the want to buy / want to sell / own / don't own matrix. there's nothing fraudulent about it. I think the case is less clear with naked shorting, because that is somewhat similar to fractional reserve banking, now that i think about it. At least that one could be problematic, I agree.
   • Moon (moon@shitposter.club)'s status on Sunday, 10-Sep-2023 04:20:58 JST Moon

     in reply to

     • LS
     @lain @mia I don't think it's unreasonable to be against the sale of assets that you don't own to manipulate the price of the asset.
   • laurel (laurel@freespeechextremist.com)'s status on Sunday, 10-Sep-2023 04:38:55 JST laurel

     in reply to

     • Moon
     • LS
     @lain @Moon @mia
     
     It can become a pretty big problem the moment your collateral doesn't cover your projected loss.
     Yeah as long as one gets liquidated the moment his position reaches that threshold everything is fine. But that's not what happened with GME.
     LS likes this.