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:
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Stock is selling at $100 per share (100 shares total). June 20XX
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Economy starts tanking, stock now at $95 per share. August 20XX
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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!
I think I'd understand this better if I imagine you as Margot Robbie in a bubble bath.
Okay so I’m Margot Robbie in a bubble bath, I think the stock is going to go down, so I borrow 10 shares from person B. I don’t just hold on to them, if I think the price is going down, I sell them to person C because I plan to re-buy them at a lower price later, so I can make money. Person C can then “loan” the shares to another person. So now all 10 shares are loaned twice. Stonks.