Robinhood restricts trading in GameStop, other names involved in frenzy

[MJHolland 12,725]

54 minutes ago, Economy said:

Well to be fair that doesnt mean anything. A company can grow in value without making a profit as long as their assets grow along with their debt

 

Keep in mind that debt is used to fuel investments in growth. Machinery, buildings, actual growth. Its not just debt accumulating

 

If they have a profit before you include expansionairy expansion that adds to its assets, a company can grow in value even tho on paper it never had a profit in terms of actual cashflow

 

For example you make $1000 profit... you spend $1200 in expansion

 

Your assets grew $1200 but debt only grew $200... your company is still successful and doing well even tho on paper all u ever see is red inc

That's not what I said 

The user said they posted consistently high profits above expectations which isn't true at all 

[Economy 52,860]

2 minutes ago, MJHolland said:

That's not what I said 

The user said they posted consistently high profits above expectations which isn't true at all 

Well i was only replying to the part u said about it loosing money every year yet being most valued company in the world

 

It sounded like you were implying that somehow that cant happen or its unthinkable

 

 

[Popo 3,781]

11 hours ago, JusKeepBreathin said:

I know that part. I meant there was no reason as to why it was being purchased so quickly.

it's basically being shorted, companies borrow your stock to sell off right away and they re-purchase it at the end of the  to return the stock. If they sell at $10 and it drops to $8 at the end, they make $2. So basically these hedge funds shorted 130% of all available shorts, they owe more stock than there are stocks in circulation. People noticed and started buying because these companies are contractually obligated to buy the stocks when the time comes to return it.

The platforms that are restricting trading of stocks are partly related to the company that processes trades, that company has bailed out a fund house who lost a lot of money in the initial days and they stand to lose a lot of money because they themselves shorted the stock and plunged it down to $135 yesterday night. They scooped up all the cheap stocks to pay back to those who they owe it to while the usual traders are unable to buy it.

So that is the reason why it's purchased so quickly, the fund houses are obligated to buy the stocks and you stand to profit when there are no stocks to be purchased.

[Serial Chiller 8,044]

Noooo you can’t just buy failing companies stock to drive up their price and fuxk with us wall street scammers I mean billionaires!!!

Redditors: Haha free market go brrrrrrr

[Serial Chiller 8,044]

12 hours ago, JusKeepBreathin said:

That's not how it works. Market manipulation is what the people buying Gamestop in droves are doing. Try again.

They are creating a false appearance of price. There is no gains in profit in the company to reflect such a growth in stock price. And they are only trading it because of information they have received on the internet. I don't know how broad the definition of insider trading is but it's almost there. 

Well well somebody finally realized that stocks are nothing but imaginary trust and stake in a company’s growth. 

[JusKeepBreathin 19,311]

18 minutes ago, Serial Chiller said:

Well well somebody finally realized that stocks are nothing but imaginary trust and stake in a company’s growth. 

Explain Bitcoin to me.

 

[hankhatesyouall 2,731]

So many bad takes in this thread. 

Robinhood did the right thing by saving investors from themselves (I think they were pressured by the SEC though). 

 

[Helxig 45,363]

The name 'Robinhood' is very ironic in this situation. If anyone is the modern day Robin Hood, it's the redditors.

Disgusting how the mega-wealthy can set up a system where they can screw everyone and make money... until it's reversed on them, and they're allowed to change the rules. Makes me sick. Redditors need to find a way to permanently destroy the stock market

[HEARTSTOP 3,154]

14 hours ago, JusKeepBreathin said:

Tesla has reported hitting it's profit goals everytime for a year. Stock goes up. Today Tesla missed it's goal stock went down. Go figure.

That's how stocks work. Unless there is market manipulation or insider trading. 

Or if it's Friday the 13th...

Wall Street has been a joke since forever. A joke where the rich laugh while playing with the money their underpaid staff makes them.

I get your concern with people that are counting on their tiny stock market gains (compared to these giant rich men) over the years for their retirement, but I guess that's what you get when your country doesn't have a well developed social system.

[PartySick 172,545]

I'm loving the fact that our generation basically made "eat the rich" our motto and we seem to be setting the table

We're going to have so many powerful and amazing leaders come from kids born in the 90s and 00s. I can't wait to see it.