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14 Jun 2021 04:02:44 UTC
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Reddit Short Squeeze Explained
A stock is "shorted" when it's "borrowed" from a brokerage, sold and then hopefully repurchased at a lower price. So the short seller can replace the "borrowed" stock. Basically it is taking someone else's stock, selling it and replacing it before you get in trouble. If the stock price drops you make money if the price rises, you have to bring money to the table to buy back the stock at a higher price. So you can return it to the rightful owner. Stock brokers get away with this because they have float. Basically they are not loaning out all the shares of stock, just some. So if an owner needs to sell, they can. Because there is enough stock in the brokerage house for no one to notice.... or at least to prevent any issues.

Naked shorting occurs when more shares are shorted than actually exist. Shouldn't be legal, but our fiat financially system is on the verge of blowing apart into an epic collapse. Welcome to America, were the rich get super rich at the expense of the poor and middle class.

This video dive into whats happening with the reddit crowd and the short squeezes. Squeezes happen when a group recognizes that another group is short, and thus they swoop in, buy up all the shares and force the short sellers to cover their shorts "aka rebuy the stock" at a much higher price. Creating a nice profit for themselves, at the expense of the short sellers.

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https://www.youtube.com/watch?v=wp-b0k0Diww
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