Short Selling:.... Your broker (Robinhood, TD Ameritrade etc), borrows the SHARES from traders that already OWN Game Stop shares and re-sells them into the market at current prices (lets say $10) and that money goes into their account........ So as more shares enter the market, these dilute the share prices and price drops. Then the Short Seller will buy(pay for) the shares at a lower price and keeping the difference($10 - $6 = $4)... BUT when prices go up, the SHORT Seller loses money and will try to buy the shares back minimizes the loss ....at the same time this dries up those shares that were borrowed and prices quickly rise. NOW the brokers STOPPED the ability for traders to BUY more shares only SELL shares to favor the SHORT SELLERS. ..Short Sellers are needed in the stock market as they look for fraudulent accounting and SHORT the STOCK otherwise 1+1=9 and reporting numbers are all false.
Short Selling:.... Your broker (Robinhood, TD Ameritrade etc), borrows the SHARES from traders that already OWN Game Stop shares and re-sells them into the market at current prices (lets say $10) and that money goes into their account........ So as more shares enter the market, these dilute the share prices and price drops. Then the Short Seller will buy(pay for) the shares at a lower price and keeping the difference($10 - $6 = $4)... BUT when prices go up, the SHORT Seller loses money and will try to buy the shares back minimizes the loss ....at the same time this dries up those shares that were borrowed and prices quickly rise. NOW the brokers STOPPED the ability for traders to BUY more shares only SELL shares to favor the SHORT SELLERS. ..Short Sellers are needed in the stock market as they look for fraudulent accounting and SHORT the STOCK otherwise 1+1=9 and reporting numbers are all false.
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