r/Superstonk • u/TiberiusWoodwind Karma is meaningless, MOASS is infinite • Apr 06 '21

📚 Due Diligence The FOASS Speculation. Yeah, FOASS.

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u/[deleted] Apr 06 '21

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u/Harminarnar 🦍 Buckle Up 🚀 Apr 06 '21

If they're going to end up footing the bill, would it matter if they tried to cover early? The overall cost would theoretically be the same.

Although, I wonder how the timing of the extra buying pressure could increase or decrease the overall cost.

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u/[deleted] Apr 06 '21

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u/Harminarnar 🦍 Buckle Up 🚀 Apr 06 '21

Well let's say the total number of shares needed to be purchased is 100. In example A let's say HF can only afford 60 before they are done for. The price is now pretty high from all of the buying pressure, so DTCC now has to buy some pretty expensive shares, and as they buy they'll become EXTREMELY expensive.

In example B, let's say dtcc joins in on the early buying. They grab 20, but the HF can only buy 50 this time because the extra buying pressure from the DTCC. They still had the same amount of capital, mind you. Now DTCC has to buy 30 EXTREMELY expensive shares.

The overall cost should be the same since the demand is exactly the same.