Donāt have access to a Bloomberg terminal. Only have access to a Google terminal
Some institutions opened new positions while overlooking the short to float ratio. Maybe thatās common practice, but itās the seed, root and stem of the current problem. Maybe it wouldnāt have became a problem with the potential to obliterate the entire system if it wasnāt noticed. But it was. And Iām glad it was.
I believe itās wrong to sell more stuff than what you have available.
Of course one can argue that airlines overbook flights because more often than not thereās people loosing their flights and that way with overbooking more people have the chance to be served. But there are also times when thereās 2 people with a ticket for the same seat. Thereās no way to create extra seats on the spot. And one is asked to leave the flight and wait for the next one. I think this is wrong. I think this should be obscenely compensated for the troubles causedā¦
With overshortings thereās a potential twist though. Management of the overshorted company could issue new shares to raise capital in an opportunistic move.
Edit:
Funny you mention
I feel like that character right now. But now on the opposite side of the tradeā¦ and tell to myself āOkā¦ buy itāā¦ but these prices are insane and one day they will free fall. Hope everybody realises that
Edit2: time to go to work