ARK's Cathie Wood discusses Reddit, GameStop, and short sellers
"I didn't know that a stock could be, or that 140% of the float of a stock could be short. That was a surprise to me."
----- Cathie Wood
----- Cathie Wood
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炸天帮-W : Yes, as long as we buy it or take it in our hands, the Wall Street wolf will one day die by itself.
curtaincall : Informative thoughts
只反人性 炸天帮-W: yes the stocks short go up because mechanism like to sell they’re stocks with higher price so they just stop selling when the price reach estimate they go selling again that’s what they do. They are the big winner finally
oo420show : who cares. I didn't invest late in the game.
DisneyDad : Only point I agree with Cathie is that she is a 100% right that all this GME frenzy is creating a bond bubble.
But I don’t think her $$ARK ETFs (LIST2551.US)$ is well positioned. It’s too heavily invested in dangerous stocks like tesla which are at all time highs
DisneyDad : However a stock can be 140% short merely because of the math behind shares being borrowed many times to short. It’s a loophole in the market, but it’s mathematically possible.
If you are long tesla, it could be borrowed twice and that adds to the float twice
Knulp DisneyDad: Ark entered tesla years ago and at that time it was not high at all lol
DisneyDad Knulp: Agree to that point. They should probably look to unwind their position a little bit
Knulp DisneyDad: I appreciate her attitude of always looking at news things and having conversation with young people, that’s what most wall street gurus don’t do
LloydC DisneyDad: This is actually one of the reasons that some individuals called for placing sell orders on these particular stocks. If you have a sale order placed, the shares in question can not be lent. It ties up the system, the shorts have to find available stocks, to reopen positions with. I’m not sure how much that would actually help, but the short seller’s should have know better than go that deep.
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