| Go back to previous topic | | Forum name | General Discussion | | Topic subject | This. It was a 'by the rules' move, just shady timing | | Topic URL | http://board.okayplayer.com/okp.php?az=show_topic&forum=4&topic_id=13421760&mesg_id=13422182 |
13422182, This. It was a 'by the rules' move, just shady timing
Posted by flipnile, Fri Jan-29-21 06:35 AM
>People are borrowing to buy the stock. To protect themselves,
>the brokerage requires you to put money into an account
>(margin account). That way if the stock falls in value, they
>can be sure they'll recoup at least some of the loan.
>
>If the stock declines, then the broker will call the investor
>and be like "hey, you need to put some more money in that
>margin account immediately". If you don't, then they'll sell
>the stock you bought with borrowed money and recoup.
>
>That's probably what happened with these since Gamestop fell
>so much today.
>
>A lot of shady stuff happening today. But this appears to be
>legit (if it is indeed a margin call). I can't imagine any
>other scenario where it would be allowed.
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