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Teens and Gamestop Stoke blow up the hedge fund, an exciting story, come to know about it. It was not expected that the stock reaches 1500%
what about GameStop?
It is a company specialized in selling electronic games located in the United States
It has many branches in all states
Interested in selling and exchanging toys, selling and buying old
It is an important place for gamers, really all the games you need, you will find
Gamestop stock story
Before we start, we must know that there is a group called (Hedge Fund)
This group, as we understand it, is a group of big bookmakers betting on stocks of successful large companies that have steady returns and are less risky.
It also bet on losing companies to make a profit
How does the hedge fund deal with losing companies
The process here is somewhat complicated, but with a simple explanation, the hedge fund is looking for companies whose shares are likely to drop in a matter of months.
It leases those shares from their owners on the condition that they are returned after a period
Here, companies sell those shares again, then buy them back and return them to their owners and make a profit
An example of this is hedge fund operations
Suppose that the value of the souqtube.com stock is $ 30, and the hedge fund expects after the analysis and after consulting its experts, confirming its inevitable decline after 3 months, for example.
The hedge fund begins leasing stocks from owners, on the condition that it returns after 3 months in exchange for its commission
Then he puts it up for sale on the market for $ 100
The hedge wins $ 70 plus the original price
Then he waits for the stock to fall and then buys it at the lowest possible price
Assume it is $ 10, and then the stock is returned to the original owners plus a commission
So 100-10 = $ 90
90 – commission = $ 60
So the profit is $ 60 for the hedge fund
The trick teens used
When the teenagers felt what would happen to their favorite company, they gathered on Reddit
They made a single stock purchase to save GameSpot
Indeed, they have bought millions of stokes and kept them for a while and sought out the hedge fund
Who will want to buy the shares again immediately
And that is to return it to its owners before it is too late
Hedge fund collapse begins
And here was the biggest disaster for the hedge fund
Stocks continue to rise contrary to what they had been expecting
On January 24, 2021, the order went from $ 17 to $ 45, and on January 25, it reached $ 119
Really shocking
On day 27 there is a drop
On the 28th it came to 350 dollars. What is this?
At the end of the month, it reached 470 dollars, which they crushed
They literally crushed them
The hedge fund has lost billions of dollars
Still, until now, the matter is very strange
There are young people who have made huge profits, and some of them have achieved their dreams
A strong blow to the hedge fund
Keep wandering through articles to win a mature mind here
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And also the whole thing
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