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!

    • RandyLahey [he/him]
      ·
      4 years ago

      Thanks, I guess what I was asking was more how that multi billion dollar short would actually work? Like haven't they already shorted more stock than actually exists so isn't there a limit to how much shorting can be done? And does doing more shorting actually lower the price of the stock? Do those questions even make any sense?

      I guess the question is how does throwing billions of dollars at a stock make that stock go down?

      Sorry, pretty ignorant about all this stuff