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:
-
Stock is selling at $100 per share (100 shares total). June 20XX
-
Economy starts tanking, stock now at $95 per share. August 20XX
-
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!
Well... yes and no. No in that it actually isn't allowed and naked short selling is illegal, but yes in that hedge fund douchebags don't actually have to follow laws.