It dropped 15% premarket and then went up a bit on open as regular folks tried to jump on the opportunity, a bunch of rich people made money and people like you and me are left holding the bag.
Why would you think “rich people made money”? They already hold the shares and would be trying to sell. It would be impossible to sell any large amount of shares after hours directly after a huge negative issue. If you could sell (say $1 million worth), it would be at a much lower price.
That’s probably why the price dropped. The market doesn’t actually react to news, it reacts to investors buying and selling. If the price went down that means people with lots of shares are trying to get out.
“Rich people made money” is a given under capitalism, it’s just a question of how.
In this case it’s called disaster capitalism. Any disaster or crisis, no matter how small, creates an imbalance and flow of resources, and capitalism is set up to funnel that flow to the already wealthy.
As to the details of the specific case, the other answer you got seems to know more than me about it.
You are using big words to try to sound smart, without understanding the specific details of the situation. There’s more than one group of “rich people” trading in the early market. Some are buying and others are selling. They are just moving money back and forth within the same “class” (as you understand it).
The other guy is wrong because in a situation like this there are very few buyers in the early market. He focuses only on the “rich” buyers and ignores the larger group of “rich” sellers trying to get rid of their shares. It’s much more likely that most “rich” sellers waited until the market opened because they didn’t want to sell while it was thinly traded.
So if you care about “classes”, the “rich” generally lost money because the company they already own went down in value. Maybe a few people bought at the bottom and sold when it went higher, but that was neither a large percent of “rich” investors nor a guaranteed return.
I’m explaining it to you because the other comment has a low level understanding of the specifics, while you admit you don’t understand. It’s more dangerous to think you understand something than to know your limits. I can trade in early / late markets but don’t because they have no one else there. The market has few other participants and that makes it too choppy.
Damn it went up
It dropped 15% premarket and then went up a bit on open as regular folks tried to jump on the opportunity, a bunch of rich people made money and people like you and me are left holding the bag.
Why would you think “rich people made money”? They already hold the shares and would be trying to sell. It would be impossible to sell any large amount of shares after hours directly after a huge negative issue. If you could sell (say $1 million worth), it would be at a much lower price.
That’s probably why the price dropped. The market doesn’t actually react to news, it reacts to investors buying and selling. If the price went down that means people with lots of shares are trying to get out.
“Rich people made money” is a given under capitalism, it’s just a question of how.
In this case it’s called disaster capitalism. Any disaster or crisis, no matter how small, creates an imbalance and flow of resources, and capitalism is set up to funnel that flow to the already wealthy.
As to the details of the specific case, the other answer you got seems to know more than me about it.
You are using big words to try to sound smart, without understanding the specific details of the situation. There’s more than one group of “rich people” trading in the early market. Some are buying and others are selling. They are just moving money back and forth within the same “class” (as you understand it).
The other guy is wrong because in a situation like this there are very few buyers in the early market. He focuses only on the “rich” buyers and ignores the larger group of “rich” sellers trying to get rid of their shares. It’s much more likely that most “rich” sellers waited until the market opened because they didn’t want to sell while it was thinly traded.
So if you care about “classes”, the “rich” generally lost money because the company they already own went down in value. Maybe a few people bought at the bottom and sold when it went higher, but that was neither a large percent of “rich” investors nor a guaranteed return.
I’m explaining it to you because the other comment has a low level understanding of the specifics, while you admit you don’t understand. It’s more dangerous to think you understand something than to know your limits. I can trade in early / late markets but don’t because they have no one else there. The market has few other participants and that makes it too choppy.