#GameStop stock price rise and volatility:
#shortsqueeze is a special form of Predatory Trading (see my paper @JofFinance with Lasse Pedersen)
people.stern.nyu.edu/lpederse/paper…
Historical short squeezes
#shortsqueeze is a special form of Predatory Trading (see my paper @JofFinance with Lasse Pedersen)
people.stern.nyu.edu/lpederse/paper…
Historical short squeezes
Some more historical short squeezes are
- 1901 Northern Pacific Railroads
- 1923 Piggly Wiggly [read great twitter thread by @dollarsanddata ]
- 1980 silver short squeeze by Hunt brothers
- @Volkswagen (attempted takeover by Porsche)
- 1901 Northern Pacific Railroads
- 1923 Piggly Wiggly [read great twitter thread by @dollarsanddata ]
- 1980 silver short squeeze by Hunt brothers
- @Volkswagen (attempted takeover by Porsche)
What's new? combine social media to coordinate + "meme investing"
What's the same? (historical saying)
"He who sells what isn't his'n, must buy it back or go to pris'n." (Daniel Drew)
What's the same? (historical saying)
"He who sells what isn't his'n, must buy it back or go to pris'n." (Daniel Drew)
Policy questions:
- to what extent should short-positions be made transparent or not? transparent short positions allow people to coordinate short squeezes.
- limit the number of short-positions (short-interest) to a fraction of the outstanding shares (or free-float)
- to what extent should short-positions be made transparent or not? transparent short positions allow people to coordinate short squeezes.
- limit the number of short-positions (short-interest) to a fraction of the outstanding shares (or free-float)
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