| Thanks for this crucial point of both clarification and further confusion. The 'true believers' in this stock's idiosyncratic risk are expecting a short squeeze due to a confluence of relatively unknown market mechanisms such as FTD, CNS, reg SHO, and the formation of a short-busting coalition between Carl Icahn via BBBYQ and others... It's a rabbit hole, for sure. But the fact is that the DTCC, FINRA, and other SROs controlling the markets are inscrutable black boxes that don't provide enough data for anyone to know the extent of the fraud they may or may not be perpetuating by systematically creating 'synthetic' shares in the publicly companies regardless of the officially authorized outstanding shares according to the companies' charters. Look at the ongoing BBBY CH11 bankruptcy proceedings for an example of how difficult it is to get an idea of 'TSO' or (Total Shares Outstanding) for a public company. The claim is that more shares have been created within the DTCC than the company has authorized, and the right corporate maneuvering could force these 'extra' shares to close or cover which would drive demand exceptionally high. Disclaimer: I own GME because the number of FTDs is in the high millions some days, and the notional values in the 10s of millions. Something is (still, 2 years later) up with this security in particular, and even if I don't become a billionaire from this investment I hope to shine some light on a corrupt corner of the market that has become 'business as usual' while I strongly disagree that it should be tolerated at all. (FTDs and Synthetic Shares) |
It is readily apparent why there are investors who think this way, starting with a conspiracy theory about secret messages in a children’s book.