Stocks - The Best Buys 2

[Patek23]

Yes, I attempted to purchase 1 GME stock yesterday just to see (limit order). From my IBKR cash account. Would not allow my purchase.

If I want to throw my own money out the window thats my problem. What risk was IBKR at from that purchase?

[burn_this_city]

The issue has been with the clearing houses that actually perform the trades and square up the accounts. They were running into liquidity issues because they have to hold the funds for 2 days, and the short sellers/brokers didn't have enough to cover. That was essentially the explanation the Webull CEO gave.

[Monahammer]

The US is just Russia with better PR and 100 Putins instead of 1.

[burn_this_city]

https://ca.finance.yahoo.com/news/we...172539318.html

[AltaGuy]

This has been the most fascinating week of watching the stock market ever for me.

I really wish there was an accurate way to figure out the outstanding short positions. From what I can tell, there isn't. It would make sense that many of them got out yesterday during the limited trading period - and it will be interesting to see what happens with the class action around that, if anything.

I don't know much about the actual reality of what's going on, nor does it seem like anyone else does either. But on the side of "maybe the crazy people at WSB are right", a friend in finance in NYC says they really are crapping their pants over there. So that's fun.

[TorqueDog]

Originally Posted by AltaGuy

This has been the most fascinating week of watching the stock market ever for me.

I really wish there was an accurate way to figure out the outstanding short positions. From what I can tell, there isn't. It would make sense that many of them got out yesterday during the limited trading period - and it will be interesting to see what happens with the class action around that, if anything.

At best, you can find the outstanding short interest: https://www.highshortinterest.com/

Or look at the Share Statistics on Yahoo Finance: https://finance.yahoo.com/quote/GME/...atistics?p=GME

[Patek23]

Originally Posted by burn_this_city

https://ca.finance.yahoo.com/news/we...172539318.html

I find this hard to believe considering that GME isnt even close to one of the highest volume traded stocks on a day to day basis. People were trying to purchase like 5 stocks a pop when its at such high prices as 300+. You can purchase up to 5000 shares at once on these brokerages of any other stock. Of course they are going to come out and say this was really the reason...

[Enoch Root]

Originally Posted by Flaming Homer

I find this hard to believe considering that GME isnt even close to one of the highest volume traded stocks on a day to day basis. People were trying to purchase like 5 stocks a pop when its at such high prices as 300+. You can purchase up to 5000 shares at once on these brokerages of any other stock. Of course they are going to come out and say this was really the reason...

Most of the volume on most stocks is done by institutions, through institutional brokerages and custodians. Those volumes are primarily on large cap stocks with no where near the same volatility. There are no clearing or settlement risks on any of that stuff.

It is very likely that GME and AMC would be the biggest volumes for RH and these brokerages, over the last few days. Probably by a considerable margin. A significant percentage of it from accounts with little to no assets in them

[bizaro86]

Originally Posted by Flaming Homer

Yes, I attempted to purchase 1 GME stock yesterday just to see (limit order). From my IBKR cash account. Would not allow my purchase.

If I want to throw my own money out the window thats my problem. What risk was IBKR at from that purchase?

I agree with this sentiment. That said, IBKR is back allowing GME trading. I was able to write bear call spreads and some very low strike puts today through IBKR.

I think they are losing customers over this issue. I got a defensively worded email about it.

[CroFlames]

FWIW, I've there have been no restrictions trading anything on RBC.

However, the site tends to crash from time to time. Sometimes at inopportune times.

And every trade costs $9.95.

Wait, why do I use RBC again?

[GGG]

Eventually the stock price returns to something like the value of the company. At that point in time the retail investors left holding the bag get screwed. And if enough retail investors have bet their rent money and bill payments the economy gets ####ed.

Restricting ownership limits in a clear bubble may be actually protecting the retail investor

This is:was a classic pump and dump using modern technology and the short squeeze and social Justice as the primer.

[agulati]

Questrade has had no restrictions either. Not sure if any Canadian broker has had some.

[CroFlames]

Originally Posted by GGG

Eventually the stock price returns to something like the value of the company. At that point in time the retail investors left holding the bag get screwed. And if enough retail investors have bet their rent money and bill payments the economy gets ####ed.

Restricting ownership limits in a clear bubble may be actually protecting the retail investor

This is:was a classic pump and dump using modern technology and the short squeeze and social Justice as the primer.

GME was not classic pump and dump. BB, AMC, BBBY and others were IMO.

[Krovikan]

Originally Posted by agulati

Questrade has had no restrictions either. Not sure if any Canadian broker has had some.

TD had some, but not sure if it was a US only thing as there US brokerage is seperate.

Not sure if DTCC is the stock transaction trust for Canadian brokers, DTCC put 100% collateral on share purchases due to the risk (normal is around 2% from what I hear). This caused the clearing houses to shutdown retail buying as the volumes would use all their capital, grinding the entire stock market to a halt waiting the 2-business days for the capital to clear.

So if DTCC doesn't handle the Canadian clearinghouses the same wasn't needed up here.

Sent from my Pixel 5 using Tapatalk

[Cecil Terwilliger]

Nm

[bizaro86]

Originally Posted by GGG

Eventually the stock price returns to something like the value of the company. At that point in time the retail investors left holding the bag get screwed. And if enough retail investors have bet their rent money and bill payments the economy gets ####ed.

Restricting ownership limits in a clear bubble may be actually protecting the retail investor

This is:was a classic pump and dump using modern technology and the short squeeze and social Justice as the primer.

That is all true. Although the intrinsic value of the firm will change if they are able to raise money by selling new shares at the current highs.

[Krovikan]

Originally Posted by bizaro86

That is all true. Although the intrinsic value of the firm will change if they are able to raise money by selling new shares at the current highs.

Assuming the stock exchange and SEC allows them to, and they have a strategy to use that capital. Otherwise, the value of the company per share won't really change.

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[GGG]

Originally Posted by CroFlames

GME was not classic pump and dump. BB, AMC, BBBY and others were IMO.

They used social Justice and crushing a hedge fund to get the public to pay more than the underlying value of the stock. That the market mechanisms of the hedges having to cover helped accelerate the rise of the price doesn’t change what it was.

A small educated group of people convinced masses of uneducated people to pay more than the underlying value of a stock because it was going up making millions.

Where do you see the difference?

[DoubleK]

Originally Posted by Monahammer

Dying over here holding on to my NOK and BB. I should have just grabbed popcorn and watched!

Thankfully I cancelled my $6 limit order in NOK minutes before the market opened.

I would have been underwater instantly. After a sober second thought, I realized I don't have the stomach to get involved in this racket.

[PepsiFree]

Who is “the public” in this scenario, and who got them to buy GME?

I don’t really think you understand the lead up to this.