F2F Class Notes (Tibo)

summarize the video about GME and what happened ( https://youtu.be/4ErvqnEFb-E )

Vocabulary

to squeeze (v) firmly press
I squeeze the orange to get orange juice

short squeeze : when you have to buy the stock because the price goes up against your short and you need to reduce risk
retails traders were hoping to create a short squeeze on GME

record (n) : special achievement
The world record for speed is 500km/h

to decimate (v) kill / destroy
small businesses were decimated buy covid 19

brick and mortar : physical
Amazon and eBay are hurting brick and mortar businesses

e-commerce : online business
Amazon is the leader of e-commerce

all time low (ATL)
The ATL was 5

all time high (ATH)
GME reached an ATH of 480

to halt (v) : stop temporarily
Trading was halted because of too much volatility

to float (v) the boat is floating on the water
paper floats on the water

floating shares (n) : shares available for trading
there are not enough floating shares

bull (n)someone who expect the market to go up
He is a bull

bullish (adj)
I am bullish on TSLA, I expect TSLA to go up

bear (n)  someone who expects the market to go down

bearish (adj)
I opened a short because I am bearish on GME

finite (adj) : limited
Our time is finite, we cannot waste it

infinite (adj) : unlimited

David vs Goliath  : a battle between a weak person and a giant (from the Bible)
Julian Assange fighting against the US government is a David vs Goliath story

to shoot up (v) : increase
The stock shot up by 50%

to bet (v) :risk money on a future event / to speculate
He decided to bet on GME

bet (n) gamble
I have a bet with my friend, if Trump wins I will shave my head

better (n) someone who bets

bid (v/n) : to offer a price in an auction
He decided to bid on the painting but he didn’t get it in the end
My bid was too low and I didn’t win the auction

broker (n) : the company that sells the stock to you
Many retail traders use robin hood as a broker

margin call (n) : notice that your collateral is too low and you either increase collateral or the position gets liquidated
I received a margin call this morning because the market collapsed

collateral (n): asset or something of value given when you take a loan
Very often the house is given as collateral when you take a loan to buy a big asset

undercollateralized: with less collateral than the total loan value (loan value > collateral value )
He borrowed 100K and gave a collateral of 50K, his loan is undercollateralized.Most retail loans are undercollateralized

overcollateralized : (loan value < collateral value )
He borrowed 1o0k and gave 200k as collateral

to unwind : to undo
It will take time to unwind our positions