The Investment Thread

B4YOU said

I think YouTube personalities getting paid to push trading apps while showing off huge tech gains using margin accounts is going to get people in trouble. Trading apps offering first 1k interest free and 2.5% interest after that is just crazy. Margin is all the rage on the upswing. Let’s see how this works out long term.

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I understand how margin can be used in ones favor on an upswing. But I don’t like the idea of it.

Take Fidelity as an example. If I switch to a margin account. Then all my GME shares could be lent out by Fidelity. And what will they lend those shares out for? To undermine my investment by creating shortable shares.

I was on the phone with them while transferring some of my shares out of Fidelity and into ComputerShare (where they are directly registered in my name and essentially pulled out circulation. They asked why I would do this. I told them just last week you lent out 2.5 million shares of GME so they could be shorted. That’s why.

Getting off topic, but the short interest of GME is now 113%. This could be rising each day as more and more people are going to ComputerShare. The shares available to trade (the float) is going down each day.

More than 80,000 accounts that hold GME have been created in ComputerShare in the last 3-4 months.