This contradicts the people dunking on @JonnyA.
Oh, no.
This contradicts the theory of “this was just a regulatory necessity”
WaPo Editorial Board opines having no reason to doubt RH’s explanation as to why they shut down trading.
Why couldn’t they just let people buy straight shares no leverage or options?
Give me an example then. Even in the dot.com bubble you didn’t have anything this drastic. For instance, Pets.com had a peak market cap of $400 million. Here you have a company worth maybe $1 billion hit a peak market cap of $30 billion. It’s also different than the dot.com bubble as here, everyone knows the stock value is in no way tied to the value of the company.
“True Value” is a ridiculous metric. Why is Tesla’s P/E ratio 10 times that of Apple? The “true value” of a company is what someone will buy a share at.
More accurately, the value at which you can find people that will buy and people that will sell.
This is so dumb.
The value of the shares is tied to the value of the company. In the vast majority of cases, yes, the best estimate of the value of a share will be the market price but there are, uh, some cases that come to mind where this is obviously not true.
It’s basically like saying “Draftkings is offering Team X at odds of 4 to win the game, thus the probability is 25%”.
Is that real?
Grunching a bit, and not claiming to be an expert. I suspect the answer is that fulfilling a sell order allows them to take an obligation off their books, reducing their exposure, while fulfilling a buy order does the opposite. And they are acting as their own clearing platform per the story I linked yesterday.
Yep
It SHOULD be tied to the value of the company but there is no way to ensure that is the case, which makes the whole system a big crap shoot based on the public’s opinion of a company.
This is being touted as a must listen. Just started.
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BB has fallen off, NOK is barely hanging on, now SLV is getting pushed in case you’re all wondering.
the lying psychopaths like chamath are out hard the last few days
it’s obvious robinhood restricted because they can’t buy much themselves
The SLV thing has to be a joke. There’s been zero price movement and if you’re gonna pick a target to manipulate the price of Silver is a pretty horrible one.
and dogecoin isn’t a joke? It’s all a joke, I don’t understand the reasons I’m just saying what I’m seeing in the movements
Yeah there’s been zero movement in SLV though.
it’s hard to move it on a saturday but yes volume wise they probably can’t do much, takes a lot to move that
So when is GameStop Day?