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TopicOne thing I still don't understand about this whole gamestop saga
azuarc
01/31/21 1:49:04 PM
#7:


DeepsPraw posted...
Like, why would anyone lend money? "Hey, can you lend me your money so I can spend it? I promise I'll give it right back, good as new."

But when you lend money, you get more money back in return. Are you implying that when lending stocks, you get back more stock in return?

And yeah, aecioo, I don't know crap about the process. I'm always amazed at how the stock market seems to magically create money out of nothing, but surely that money came from somewhere, right? It's not that the price of a stock goes up just because we say it does and then suddenly everyone with shares has a more valuable portfolio. At least, I hope not. But it certainly doesn't feel like a zero-sum process.

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