Wall Street is ‘losing its mindas small investors are ‘taking down the billionaires’: Charles Payne

Wall Street is 'losing its mind' as small investors are 'taking down the billionaires': Charles Payne

Wall Street islosing its mindafter a group of small investors with trading accounts ranging from $ 500 至 $ 2,500 banded together to takedown the billionaires,” Fox Business host Charles Payne told塔克·卡尔森今晚” 星期三.

的 “Making Moneyhost addressed the dramatic surge in GameStop’s stock price after a group of Reddit users teamed up to buy up the struggling retailer’s call options – pushing the company’s stock prices to unprecedented levels and hurting market short-sellers.

These hedge funds selling this stock, they don’t own the stock, so they borrow it,” Payne explained. “Imagine you borrow a stock that’s trading at $ 10 and then you drive the share price down and then you buy it back for a dollar. You make the difference, nine bucks.

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Short-sellers, Payne explained, are investors who speculate the price of a stock or security will fall in value. The strategy involves borrowing shares in order to sell them with the hopes of buying them back at a lower price in the future.

They are allowed to short so much stock,” 他说. ” Do you know the amount of stock that was out on GameStop? Let’s just say 100% of the shares that are out, they shorted 140% of the stocks, so they borrowed the same stock over and over, 以上, the same shares and sold it into the market.

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Their job, their mission was to drive GameStop to zero,” 他加了. “No one said a word on any financial network, particularly CNBC, which always lets the shorts come on …”

Fed up small-time investors revolted against Wall Street on Wednesday when they decided to collectively drive the stock price up.

It’s called a short squeeze,” Payne said, “and it’s working.

Wall Street is losing its mind and Wall Street now wants to change the rules of the game because a bunch of people with accounts ranging from $ 500 至 $ 2,500 are taking down the billionaires.

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