F2F Class Notes (Tibo) [S]

discussed the GME situation

Do you think shorting should be allowed or illegal ? why?

I heard the news 3 days ago. I saw the news that the institution want GME broke up and they can get more money from this thing but

some individuals heard about this news and they planned to save this company so they told many people to buy the stock and actually the individuals not quickly to got the news that individuals bought a lot of stock so they just think it would succeed but the result that the stock price of GME increased a lot and I heard some news that some institutions maybe they don’t want this result so they make some rules to prevent this result but it is cheating.

When I heard this news I was shocked because I don’t think individuals can beat institutions in the stock market but they beat the market because I think the stock market is controlled by many institutions so individuals get some benefits from the stock market it is only small.
completely beat the institutions in my perspective didn’t succedd but they did it

I think it is legal because some rules are made for institutions because they have some rights in the stock market but individuals didn’t have and the institutions have more resources than individuals and in the stock market there are so many factors to affect the stock direction. The factor of individuals is more but this case is only small.

A new agency will be created, institutions are different from individuals.

to contend with / match (v) 抗衡

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I heard the news 3 days ago. I saw the news that the institution wanted GME to go down / institutions had short positions on GME and they could get more money from this thing. / and they would make money with GME going down.

but some individuals heard about this news and they planned to save this company so they told many people to buy the stock / they decided to open long positions.
Actually the institutions did not quickly hear/get the news that individuals bought a lot of stock so they just thought it would succeed but the result was that the stock price of GME increased a lot/ institutions were not aware of this and some got liquidated and I heard some news that some institutions maybe they didn’t want this result / wanted to avoid liquidation so they made/created some rules to prevent this result but it was cheating. / some institutions wanted to avoid liquidation at all cost so they asked trading platforms to prevent people from buying GME.

When I heard this news I was shocked because I didn’t think individuals could beat institutions in the stock market because I think the stock market is controlled by many institutions so individuals who can get some benefits/ who can win from the stock market are small.
But they beat the market.
In the past I thought completely beating the institutions in my perspective was impossible / I thought it was impossible to beat institutions but they did it.

I think it is legal because some rules are made for institutions because they have some rights in the stock market but individuals don’t and the institutions have more resources than individuals and in the stock market there are so many factors to affect the stock direction. / Individual investors are at a disadvantage because they have less money and less resources than institutions.

The effect of individuals is even greater but this case is rare. / sometimes individuals manage to affect the stock market but it doesn’t happen often.

Vocabulary

agency (v)
The agency was created to protect people

agent (n) people working / secret agent (007)
Tom is an FBI agent

factor (n) element
What factors did you consider in your analysis?

individual investors / retail (investors) (n) 散户
retail investors were longing GME

institution (n) : big financial companies
institutions were shorting GME

to short (v) : borrow X and sell it directly because you think you can buy back X later at a cheaper price.
Institutions were shorting GME

have a short position (n)
Institutions had short positions on GME.

To long (v) : bet on an asset going up
retail investors decided to long GME.

long position (n)
He opened a long position on GME at USD100

liquidation (n) 清偿
He received a liquidation email.

to liquidate (v) : lose your money when your position is closed because the market went against you.
He expected GME to go down but it went up instead and his position was liquidated

Pronunciation

shocked

succeed