For Apes By Apes! When the Moon Is The Only Vacation That Matters!

FORUM INDEX Join The Discussions AMC Clarification Reply To: Clarification

  • CrayonMuncher

    October 17, 2021 at 8:50 pm

    The term “synthetic” has been used a lot and it’s been confusing a lot of people. All it really means is that people are purchasing more stock than what actually exists (the float), which shouldn’t be allowed.

    For you and your broker, your shares just appears like a “credit” in your account that basically has the details of your purchase. Whether they were real (part of the float) or not won’t impact you. You can think of it as an IOU. All of the shares retail owns was done in good faith and are legit. The bad actors were the banks, market makers, and prime brokers, so they will be on the hook for making good on those sells.

    The worry people sometimes have is regarding selling – having a buyer on the other end that will take your trade. This is going to be the case for everyone regardless of “synthetic” share or “real” share. The worry is whether or not your trade will get executed (maybe the whole order won’t get filled, maybe the price is too high for a buyer, etc).