Not really making a political thread. But, if a
publicly traded company's politics upset their consumer base, couldn't consumers fight back?

Ex. If your unhappy with companyx and you don't own stocks, couldn't you short the stock and if enough people do it, it would push down stock value? Same with buying puts?

I've understood how multiple buyers can drive up a stock, just not sure if I understand how "sellers" that don't own the stock can push down prices.

You can short sell the stock - sell shares that you don't own for the market price now, borrowing them from your broker for fees or interest, in hopes of buying them back at a lower price later after the stock has moved down in price.

Your broker uses shares other people own that bought them in a margin account as the shares you are officially borrowing.

Bob Knights Liver said:

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You can short sell the stock - sell shares that you don't own for the market price now, borrowing them from your broker for fees or interest, in hopes of buying them back at a lower price later after the stock has moved down in price.

Your broker uses shares other people own that bought them in a margin account as the shares you are officially borrowing.

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That makes sense. If there is a large demand for shorts, would that drive down the stocks underlying price?

Yes if there are more sellers than buyers- price will go down.

But since the sellers in this case don't own the shares and are selling our of spite- and not based on perceived value- the price will eventually go back up when the shorts cover or value buyers step into the market.

It's not necessarily out of spite - if investors think a stock will go up they may buy shares in order to profit. That doesn't necessarily mean they love the company or feel that it's noble to help the company - they are investing to make money. In the same way if investors feel like a stock price is too high or will go down, they can profit off of that by buying puts, selling calls, or short selling shares. I do think price manipulation is an issue and think some of the hedge funds are cut throat, savage, *******s, but they are generally trying to make money and not operating out of spite.

is there a timeframe on the sell to buy back that's required? hours, days, or weeks?

I did this on accident once .

Your broker may impose time limits or suddenly make you buy them back. They likely can change the interest if short interest or volatility increases. That's all in your agreement.

Step 1 - review wallstreetbets fiasco from last February.

What you are talking about would mostly effect large position shareholders. Not necessarily the underlying company. If you want to hit a company hard, then you would need to damage their revenue, not their stock price.

You virtue signal into a short position without a groundswell of unity and the hedge funds will marginalize your position for their profit. That's the equivalent of tear drops in the ocean.

I hope your principles are worth it. Probably best to sell the stock (for a profit ideally) and choose not to give them your business in the real world.

Shorts are indefinite but if you have a skimpy account the brokerage may issue a margin call requiring you to either add more equity or close/reduce your position. Firms are also required to do due diligence on their margin clients, meaning you have to be approved for margin before trading on margin. Some firms are lax on this, seeking revenue, they're also the quickest to close your positions. IMO the people who lose money the most in brokerage accounts are those trading in options who don't understand options.

Quote:

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the people who lose money the most in brokerage accounts are those trading in options who don't understand options.

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You've got me pegged!

Bob Knights Liver said:

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It's not necessarily out of spite - if investors think a stock will go up they may buy shares in order to profit. That doesn't necessarily mean they love the company or feel that it's noble to help the company - they are investing to make money. In the same way if investors feel like a stock price is too high or will go down, they can profit off of that by buying puts, selling calls, or short selling shares. I do think price manipulation is an issue and think some of the hedge funds are cut throat, savage, *******s, but they are generally trying to make money and not operating out of spite.

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Yes - but in his example - he described a situation where people would SELL the company OUT OF SPITE. to punish it.

not because they thought it was over valued.

I took it as he thinks a lot of people will sell, so he wants to profit from the stock likely going down.

If he wants to make a statement to the company then I agree with you, selling any shares he owns and stop using their products is the best way forward. A retail investor shorting even a small cap is usually pissing in the ocean.

Thanks all. I'm learning lots and love this forum. I appreciate y'all's wisdom.