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Topic	Explain the Gamestop situation like I'm ten and barely understand stocks
AllegraD 01/27/21 11:32:40 PM #46:	Ruvan22 posted... Tangential question- the investment firms that loaned out the stocks to hedge fund managers - don't they profit too as they get more money (per stock) when the stocks are returned ? the investment firms will make a profit off shorting. That's the reason they do it - it's high risk/high reward for both parties. Except one party is 1 human being, and the other party is the investment behemoth. :P They also charge fees for loaning the stocks. $$$ --- Ohhh boy! <cite>AllegraD posted [p:950002194] in Explain th... [t:79263851]...</cite> <quote>Ruvan22 posted... </cite> <quote>Tangential question- the investment firms that loaned out the stocks to hedge fund managers - don't they profit too as they get more money (per stock) when the stocks are returned ?</quote>the investment firms will make a profit off shorting. That's the reason they do it - it's high risk/high reward for both parties. Except one party is 1 human being, and the other party is the investment behemoth. :P They also charge fees for loaning the stocks. $$$ --- Ohhh boy!</quote> ... Copied to Clipboard!
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