Let's just assume that there are 100 shares of GameStop (worldwide) and go from there. Let's assume that the price per share/stock before all of this was $100 (in a "good" economy, etc.). How would this all work?

A nice timeline, step by step, line by line would be nice. For ex:

  1. Stock is selling at $100 per share (100 shares total). June 20XX

  2. Economy starts tanking, stock now at $95 per share. August 20XX

  3. People start predicting that it will go down further, thus they start "betting" (insert definitions that are accessible and not jargony), etc.

^ something like that would be nice. Thanks!

  • queenjamie [none/use name]
    ·
    4 years ago

    And I'm assuming all through this, Person B (original owner) can "sell" their interest in the stock? In other words, they can go to Person D and say "hey I got ten stocks that Person A (borrower) is borrowing right now, do you want to buy them? You'll get extra interest from A when he gives the shares back!"

    All the while Person B has no idea that Person A "sold" to Person C, and has no idea that Person C "loaned" to somebody else. Is this also allowed (i.e. for A to sell stock even though someone else is borrowing it)?

    EDIT: I mixed up the people lol. This is needlessly complicated and it's a fucking travesty that it's allowed.

    • ChapoBapo [he/him]
      ·
      4 years ago

      I have absolutely no idea, but based on my understanding of wall street and their obsession with creating contracts to do every damn thing, I wouldn't be surprised if someone came up with a way to do that or something like it.