Another rollercoaster 😂
$Lytus Technologies Holdings(LYT.US$ in at 6.00
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Alexpoh : sir, why this share drop so badly ?
Mcsnacks H TupackOP Alexpoh: Volume got low. It’s a recent ipo
Mcsnacks H TupackOP Alexpoh: An investor loaned out their shares so those are being added into the float. Hopefully they didnt loan out more than 3 million.
Mcsnacks H TupackOP Alexpoh: It has found bottom . Retail investors selling is what will drop it now.
101817578 : I saw the float was 3.2m, but volume today has been close to 12m. how is this possible? shares change hands 4 times?
Mcsnacks H TupackOP 101817578: They are allowed to loan out the other 34 million as long as they register them with the SEC. And They won’t be able to sell them publicly until they are returned.
Mcsnacks H TupackOP 101817578: It works like this: guy calls an investor and ask to borrow 10 million shares at $5.00 per share. Depending on how many shares are available they will have to put down a deposit(it’s called an interest rate but most of it isn’t). If there are 25 million shares total then the investor will ask for 66% of the total amount it would be if they were selling the shares or about $34million dollars. The guy then takes the 10 million and dumps them onto the market which would send the price down to about 2-3.00 after they are sold into the market. Guy then waits for bad news or a bear market to happen so that the price falls to 1.00. Guy then buys back the 10 million shares which increase the stock to 3.50. Guy takes them back to investor the investor returns 60-63% of Guys money. Guy profits 1.50 per share minus the 3-6% for borrowing them.