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Great info, btw. Thanks.
Posted on 01/29/2021 4:41:43 AM PST by blam
Rush Limbaugh on Thursday pointed to GameStop stock as the latest example of Washington elitists coming after ordinary Americans.
Shares of GameStop, a video game retailer, have soared in recent weeks, going from $17.08 to $347.51 at Tuesday's close.
Brokerage platforms such as Robinhood and TD Ameritrade restricted trading on Wednesday and Thursday following an unexpected surge in trading volume of various stocks. Limbaugh said the move was made to protect hedge fund billionaires, per Fox News.
"Folks, it's not just political now. The elites are bent out of shape that a bunch of average, ordinary users have figured out how to make themselves billionaires," Limbaugh said. "I’ve been studying it all morning and the best thing I can tell you is … whatever you think is going on in politics, Washington establishment, the Deep State, what have you, it's the same thing in finance."
According to Limbaugh, there are "those who are allowed to make a lot of money" and those who aren't.
"If you figure out how to make a lot of money, and if you're like Donald Trump and you figure out how to get elected, you figure out how to beat the Deep State, they're gonna come and they're gonna wipe you out," he said. "They're gonna destroy you, and that's what's happening with GameStop."
The radio host explained that users of the social website Reddit figured out how to "game the system." They joined together to turn the stock market in to a "profit-making device for themselves."
Unfortunately for the "ordinary" stock buyers and sellers, there were consequences.
"In the process they are harming the intended winners in this financial circumstance and that would be the hedge funds out there," he said.
(snip)
(Excerpt) Read more at newsmax.com ...
Once the broker buys the stock, you own it.
Vulture funds brought us obama the pandemic and now Biden but don’t worry it will get worse
Can he sell it to cover other positions?
Here’s the clause from the applicable agreement:
“All orders for the purchase of securities given for My Account will be authorized by Me and executed in
reliance on My promise that an actual purchase is intended. It is My obligation to pay for purchases
immediately or on Robinhood’s demand. I understand Robinhood may at any time, in its sole discretion
and without prior notice to Me, prohibit or restrict My ability to trade securities. I further agree not to
allow any person to trade for My Account unless a trading authorization for that person has been
received and approved by Robinhood. Robinhood reserve the right to require full payment in cleared
funds prior to the acceptance of any order. In the event that I fail to provide sufficient funds, Robinhood
may, at its option and without notice to Me, i) charge a reasonable rate of interest, ii) liquidate the
Property subject of the buy order, or iii) sell other Property owned by Me and held in any of My Accounts.
Robinhood may also charge any consequential Loss to My Account. For purposes of this Agreement,
“Property” shall mean all monies, contracts, investments and options, whether for present or future
delivery, and all related distributions, proceeds, products and accessions.”
https://cdn.robinhood.com/assets/robinhood/legal/Robinhood%20Customer%20Agreement.pdf
Only way they can sell is if you fail to pay for a security, or you don’t have the funds to cover the purchase. Period.
In a word, Robin Hood is f#cked.
I thought members of congress were exempted from insider trading laws.
And no, I’m not being sarcastic. I know it used to be true. Not sure if the law has changed since then.
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Great info, btw. Thanks.
The company financials didn’t support a $4 price either.
It was at $20 before the hedge funds shorted it and started ARTIFICIALLY driving down the price.
I thought I did.
Sorry about that.
A loans stock to HF.
HF sells stock to B.
B loans stock to HF.
HF sells stock to C.
B now owes a share of stock to A & B. Yet, there is only one share of stock involved.
This is the problem with being able to sell something you don’t own.
It will go down when there are no buyers.... with no buyers the stock does not go up. It will be a $400 stock paying a dividend of 38 cents per share.... can you do that math? And that dividend it is paying is more than the stock makes historically. So it can’t do it forever (since it can’t print money like the government can). Are you going to hold that stock and refuse to sell it? For how long?
Not anymore they aren’t. After Pelosi was exposed in 2011 trading on insider info, the public outcry was enough that they passed the Stock act of 2012 which Obama signed into law which made it illegal but did that stop Pelosi? Of course not!
https://en.wikipedia.org/wiki/STOCK_Act
You haven’t answered the question.
Holding GameStop shares isn’t a long-term strategy by Reddit buyers. But you knew that, right? Then again, maybe you don’t know that.
“For instance, there are times they can liquidate “your” stocks to cover “their” bets in order to protect the system.”
A ridiculous claim.
The only time that a brokerage can sell your stocks is if you get a margin call that you can’t cover.
Sorry, yes, everything they invested.
Don’t be dumb..... I said Game Stop “cannot stay at $300”.... and you took issue with that. Now you agree it can’t stay at $300 for long. I guess it depends on the meaning of the word “stay” for you.
Bookmark.
There have been reports, to the best of my knowledge that remain unconfirmed, that Robinhood was selling users’ shares in Gamestop without the user having entered a trade.
If that is ever confirmed, Robinhood is over, even if they manage to survive the other ways that they failed their userbase this week.
But, to the best of my knowledge, all we have are allegations at this point.
Are you sure?
Citadel Securities brought in $1 billion of earnings before interest, taxes, depreciation and amortization last quarter and $4.1 billion for the year, also a record.
The firm, which is 85% owned by Griffin according to the Bloomberg Billionaires Index, also paid out $1.9 billion in equity distributions last year. Griffin has a net worth of $21.4 billion, according to the ranking, making him the 28th-richest person in the U.S.
The last time they paid a dividend was March 2019.....
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