Gamestop

stocker08

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Could the clearinghouse simply have said "until you get more cash, no buys of this stock from you, sorry"?
RH shut down purchases of GME to everyone. Regardless of whether they have available cash balances or not. So....and I'm not exactly sure what you are asking....but there ARE different stocks that have different margin requirements. So there are plenty of stocks that you cannot buy on margin. They certainly could have done that, but didn't.

Again....I don't really care that much. Unless of course RH did this on directive from an MM or a hedge.
 

John Galt

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Warren Buffett made a bet with some hedge fund managers years ago that they couldn’t outperform the S&P 500 index net of fees over a 5 or 10 year period. Buffett won the bet and donated like a million dollars to charity.
 

John Galt

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I read they stopped straight up retail buying with cash. Options is one thing but there is no excuse for them stopping someone with liquid cash in their account from buying the stock.
They’re a private company that can do what they want. I swear I’ve heard that before. 🤣
 

TruthSeeker

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Warren Buffett made a bet with some hedge fund managers years ago that they couldn’t outperform the S&P 500 index net of fees over a 5 or 10 year period. Buffett won the bet and donated like a million dollars to charity.
The hedge fund guys paid up early.
 

FormerFatOL

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RH shut down purchases of GME to everyone. Regardless of whether they have available cash balances or not. So....and I'm not exactly sure what you are asking....but there ARE different stocks that have different margin requirements. So there are plenty of stocks that you cannot buy on margin. They certainly could have done that, but didn't.

Again....I don't really care that much. Unless of course RH did this on directive from an MM or a hedge.
Agreed. I think that's the issue. Robinhood could have a huge conflict of interest by marketing to the retail investors but actually making money from the institutional players.

A decent article link on that: Opinion: Who’s getting rich off GameStop’s stock? The market makers and middlemen, including Robinhood - MarketWatch
 

MplsGopher

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RH shut down purchases of GME to everyone. Regardless of whether they have available cash balances or not. So....and I'm not exactly sure what you are asking....but there ARE different stocks that have different margin requirements. So there are plenty of stocks that you cannot buy on margin. They certainly could have done that, but didn't.
I guess this is the final detail to understand, for all - why did they close down cash purchases of GME.

Maybe they thought it would just be simpler to halt all purchases, even though the clearinghouse only was giving them issues with options. Or maybe their system never had the option to allow only cash purchases but not options, built into it (yet)? Throwing poop against the wall here.

It will come out, if/when there is a hearing.
 

Section2

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Warren Buffett made a bet with some hedge fund managers years ago that they couldn’t outperform the S&P 500 index net of fees over a 5 or 10 year period. Buffett won the bet and donated like a million dollars to charity.
That’s fine, but nobody invests in a hedge fund who isn’t aware of their performance, strategy and fees.
 

fan of Ray Williams

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Agreed. I think that's the issue. Robinhood could have a huge conflict of interest by marketing to the retail investors but actually making money from the institutional players.

A decent article link on that: Opinion: Who’s getting rich off GameStop’s stock? The market makers and middlemen, including Robinhood - MarketWatch
Vlad is doing some double talk today.
I guess this is the final detail to understand, for all - why did they close down cash purchases of GME.

Maybe they thought it would just be simpler to halt all purchases, even though the clearinghouse only was giving them issues with options. Or maybe their system never had the option to allow only cash purchases but not options, built into it (yet)? Throwing poop against the wall here.

It will come out, if/when there is a hearing.
As you were asking yesterday, how does a stock price move up? Good battle going on right now with SNDL, a little penny stock. Over 852,000,000 volume so far today.
 

MplsGopher

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As you were asking yesterday, how does a stock price move up?
Am I correct if I guess that this means you're in the camp that think they shut down cash buys additionally on purpose to prevent the stock price from going up? Otherwise, I'm not sure what you're getting at.

Good battle going on right now with SNDL, a little penny stock. Over 852,000,000 volume so far today.
52wk high around $2, and it's down around $0.80 at this moment?
 

fan of Ray Williams

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Am I correct if I guess that this means you're in the camp that think they shut down cash buys additionally on purpose to prevent the stock price from going up? Otherwise, I'm not sure what you're getting at.
Just pointing out how these shares trade. That's all. Nothing deep.


52wk high around $2, and it's down around $0.80 at this moment?
Dude, You are onto this stuff now. Cool.
 

MplsGopher

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Gamestop was about forcing the price way up. The one you brought up is down. Just wondering what the connection is.
 

fan of Ray Williams

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Yesterday you were asking how does the price move? Correct? (You recall your examples with Les?) The stock , SNDL, has traded over 150 million shares in the last 3 hours alone and the price has hardly moved at all. Because there is and even amount of buyers and sellers. That is all I was attempting to point out. Anyways never mind, no big deal.
 

gopheraschells

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Gamestop was about forcing the price way up. The one you brought up is down. Just wondering what the connection is.
you high jacked a somewhat interesting thread/discussion about GameStop with (very) basic questions on how the stock market works. Now you read an article or two and are debating people who clearly know more on the subject than you

Your constant posting/questioning is really watering down this thread.
 

MplsGopher

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Your constant posting/questioning is really watering down this thread.
Posters are not allowed to make posts, unless they post the right things? That is absurd.

Please skip over my posts, if they bring you displeasure (or put me on ignore). Also, no need for you to make a post announcing that you're going to do that. You can just do it, and not tell anyone you did it.
 

Spoofin

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Not true. Some love the prestige and the ability to brag about being in a fund.
So, I'm to feel bad for someone who loves the prestige and ability to brag about being in a fund but didn't take the time to understand their performance, strategy and fees? That is the funds fault? The investor is the victim? Crazy Talk!
 

stocker08

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Vlad is doing some double talk today.

As you were asking yesterday, how does a stock price move up? Good battle going on right now with SNDL, a little penny stock. Over 852,000,000 volume so far today.
It's kind of funny....I flipped shares of SNDL a couple of times around a month ago. I haven't been paying attention to it....and I thought that you were off on that 852 million volume. Nope....with AH trading....they've had ONE BILLION (and counting) trade hands today. Which is incredible considering their float is only 1.1 billion.
 

fan of Ray Williams

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It's kind of funny....I flipped shares of SNDL a couple of times around a month ago. I haven't been paying attention to it....and I thought that you were off on that 852 million volume. Nope....with AH trading....they've had ONE BILLION (and counting) trade hands today. Which is incredible considering their float is only 1.1 billion.
Looks like 1.1 billion is their outstanding shares. Float appears to be 435.76 on Finviz
Even more amazing then. https://finviz.com/quote.ashx?t=SNDL
 

fan of Ray Williams

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Chamath P is harsh on Robinhood guys
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">I remember when I met the <a href="https://twitter.com/RobinhoodApp?ref_src=twsrc^tfw">@RobinhoodApp</a> founders when they were raising their Seed, Series A and Series B. I passed.<br><br>Why? <br><br>Optimize for integrity whenever possible because integrity compounds and assholes will fuck you.<a href="https://twitter.com/hashtag/DeleteRobinhood?src=hash&amp;ref_src=twsrc^tfw">#DeleteRobinhood</a></p>&mdash; Chamath Palihapitiya (@chamath) <a href="">January 29, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 

Nax5

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I like the hedge funds. They are making tons of money by being smarter than others. Good for them. That is what America is about. All I see here is a bunch of jealous wanna be’s rooting against those that have more because they have more. Funny thing is I’m sure they all saw what was happening and hedged long as it went up.
Hedge funds played a big part in causing the 2008 financial crisis. So i don't really have any sympathy for them.
 

atsgopher

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It isn't new that brokerages halt all purchases of stock, even when hypothetically they have no good reason to halt regular purchases? Honest question
Whew, sort of a lot to talk about.

I don’t think they didn’t necessarily have a good reason. I haven’t looked into it enough to opine conclusively. However, Multiple brokerages did it. It’s legal; In some cases proscribed. Also SEC has rules, as does FINRA, and the exchanges.

short answer for the new part is, no. They have SEC manadated suspensions and halts. They’re different. Also To really dig into this I’d have to look back through brokerage rules.

there is history and talk of more of this from the progressive front. See Limit up/limit down. once again not necessarily a value judgment so much as an answer (there are legitimate concerns on both sides).

The limit up and down was used in commodity markets 70s and 80s. Dont recall when that went away.

for the most part this (preventing buying) is done because little people were absolutely smoked in the past. They also might (high probability) be getting smoked now, even though it looks cool. These are people that don’t know the first thing about what is going on versus rocket scientists (literally wall street has more than everwhere else combined).
 

atsgopher

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Hedge funds played a big part in causing the 2008 financial crisis. So i don't really have any sympathy for them.
No they didn’t.

Americans did it. Robert schiller famously called it every year since 1984.
 

Nax5

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No they didn’t.

Americans did it. Robert schiller famously called it every year since 1984.
Hmm. To be honest, I don't know a lot about it. But my inlaws who were in the building profession at the time tell it that way. I think there's a decent amount of supporting evidence out there. Do you have any good references about the cause? I'd like to know more.
 
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atsgopher

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Hmm. To be honest, I don't know a lot about it. But my inlaws who were in the building profession at the time tell it that way. I think there's a decent amount of supporting evidence out there. Do you have any good references about the cause? I'd like to know more.
Disclaimer A concise answers going to require a lot of truncation, thus you might have to prod:

Simply put, hedge funds are just an investment partnership. They often focus on a single strategy.

Hedge Funds have a history of appearing shadowy. It was because regulations limited who could do that type of investing to those that have a lot of money.

It’s a place that is pretty hard to fake it (A fund’s founder that is) Not some place where your daddy got you the job. Most 70s-early 2000 were probably finance people that also excellled in programming. Or people that excelled in math, physics and were street smart.

they literally just responded to conditions. some of them made a lot of money from 2008.

However, it’s kind of like blaming 3M for COVID because they make N95 masks. They just make something that responds to a risk.

They as a population could see it coming (2008). However, you wouldn’t believe how many were saying it for years.

For books I’d read Nassim Nicholas Taleb.

Fooled by Randomness published circa 2001
The Black Swan 2007

He’ll explain it abstractly.

i’d be remiss if I didn’t mention irrational exuberance by Robert shiller. I don’t recall liking it. However, he is generally considered the first to sound the alarm.
 
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