What would happen if...

O

OxonianTrader

...every trader on this forum promised to short a particular stock tomorrow using all the leverage accessible to them?

What do you think would happen? You think we have enough power here to push a firm toward bankruptcy? lol

just curious....
 
You would have an example where game thoery worked and we all got rich... until it was time to cover.. there would have to be a cover target, but we all know someones going to cover early.. so it would never work. Only in theory.

So on our P/L for a moment or 2 we would all be rich.
 
I think a likely scenario would be that, seeing how companies don't go bankrupt merely because their stock price goes down, there would be an initial "why did XYZ Corp spike down" question that would appear on this forum, and concurrently, savvy institutions holding the stock would quickly ascertain that the company was fine and the spike unfounded, probably bid the price back up to support, spurring covering and new buying, which would rocket the stock to higher levels, the momentum of which would cause a break through to newer highs, which leads to the bigger question: How will you be able to cover your position while in federal prison on charges of market manipulation?
 
Quote from ChaosNSX:

You would have an example where game thoery worked and we all got rich... until it was time to cover.. there would have to be a cover target, but we all know someones going to cover early.. so it would never work. Only in theory.

So on our P/L for a moment or 2 we would all be rich.
More...

But then, what if, in the spirit of Buffet, we all promised to hold for at least 5 years? Let's say we all signed a contract to do so where we'd be breaking the law if we sold in less than five years.

Or, if we had a setup where only half of us would be allowed to sell at some point, another half of the remaining half at some later point, and the rest at some later later point. But, those who sold last this time around would be part of the group allowed to sell first next time around when the thing is played out in a different stock.

sounds like fun huh? I guess you could call that a stock market pyramid scheme or something.

I would love to explore the mathematical complexities of such a plan....maybe I will...hehehe
 
Is this cause of my game theory post, cause I was thinking along the same lines. Yeah if we made it a legal contract we could probally rotate liquidity and have some collusive control over the supply and demmand of that stock. I would think it would work better as a price fixing mechanism than as a stock price appreciation or depression mechanism. Someone beyond our et universe will be buying that stuff up and equalize our effect based soely on the fundementals.



Quote from OxonianTrader:



But then, what if, in the spirit of Buffet, we all promised to hold for at least 5 years? Let's say we all signed a contract to do so where we'd be breaking the law if we sold in less than five years.

Or, if we had a setup where only half of us would be allowed to sell at some point, another half of the remaining half at some later point, and the rest at some later later point. But, those who sold last this time around would be part of the group allowed to sell first next time around when the thing is played out in a different stock.

sounds like fun huh? I guess you could call that a stock market pyramid scheme or something.

I would love to explore the mathematical complexities of such a plan....maybe I will...hehehe
More...
 
Quote from ChaosNSX:

Is this cause of my game theory post, cause I was thinking along the same lines. Yeah if we made it a legal contract we could probally rotate liquidity and have some collusive control over the supply and demmand of that stock. I would think it would work better as a price fixing mechanism than as a stock price appreciation or depression mechanism. Someone beyond our et universe will be buying that stuff up and equalize our effect based soely on the fundementals.
More...

I'll check out your game theory post which I haven't seen yet. thanks
 
Quote from gms:

...there would be an initial "why did XYZ Corp spike down" question that would appear on this forum, and concurrently, savvy institutions holding the stock would quickly ascertain that the company was fine and the spike unfounded....
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Wow, are you saying that "savvy institutions" are reading this forum? Cool!
 
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