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OpenAI to confidentially file for IPO as soon as Friday (www.cnbc.com)
submitted 4 months ago by to c/technology@lemmy.world
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[–] 10 points 4 months ago (13 children)

Can someone explain to me why it would be a bad idea to short the fuck out of this stock? I'd like to make money and be a principled human at the same time, but I'm not well versed in the stock market.

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  • [–] 16 points 4 months ago (3 children)

    It's a bad idea because shorting requires a settlement date.

    You can't keep a short the same way that you keep an investment. You need to predict at what time it is worth less than it is now.

    It's also a bad idea, because you can lose more than you invest. If you buy a stock, you can only lose the purchase price of that stock. If you short it, there's no upper limit to how much you can lose if the stock keeps rising. The people holding the stocks will do anything to keep inflating the stock price, even if it's evident to everyone that it is a bubble. As long as they can keep throwing money at it, they can keep the price going up.

    I'm not well versed in the stock market.

    This is a good reason not to short.

    principled human

    This is an even better reason not to short.

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  • [–] 3 points 4 months ago (2 children)

    Thanks for the reply. This is the first time someone has explained stock options so simply to me.

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  • [–] 7 points 4 months ago (3 children)

    You're a dog you can't legally invest

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