INDIVIDUAL investorsCREDIT riskMARKET timingMARKET manipulationThe GameStop stock trading episode that began in January 2021 has been unprecedented in some ways, especially in the ability of market participants to organize collective action openly yet anonymously. In other ways, however, it's been an ...
Essentially what happened was there were a number of hedge funds and other investors who were shorting GameStop pretty heavily, meaning that they were betting that GameStop would lose money, and some other investors executed what is called a “short squeeze.” There’s a lot going on here, ...
The decision by the popular trading app Robinhood to restrict the purchase of GameStop shares through its platform on the 28th—when the stock price was still considerably elevated—also contributed heavily to the price’s sharp reversal. A brokerage that marketed itself as being accessible to smal...
The short squeeze for GameStop happened in the same way anyshort squeeze does. Most, if not all, stocks on the stock market have investors who hold a short position against the stock. This means they are making a calculated bet that the stock price will decline over time. Shorting a stoc...
If you, like many investors, saw what happened withGameStop(NYSE: GME), you likely have this question. After all, it’s not a strategy often used by the common investor. Here, we’ll answer your question. But before we talk about short squeezes, there’s something you need to understa...
Shorting is perfectly legal but it is risky as investors are relying on the company failing. Any positive news could see shares rise and cause them to make a loss – and this is what has happened with Gamestop. What is Reddit? Reddit is a social media website where you can visit indivi...
GameStop Corp. shares have risen by more than 1,900% since Jan. 8, hurting market short-sellers. Shares soared from $17.08 a few weeks ago to $347.51 at Tuesday's close. Here's how it happened.FILE - An exterior view of a GameStop store on July 21, 2020 in Pembroke Pines, ...
Why did Robinhood stop users from buying GameStop shares? On Jan. 29, Robinhood postedanother blogabout what happened. The company explained it was required to keep a substantial amount of money on hand in order to process all the trades happening through its clearinghouse, which is the part ...
And now, these same young adults have found new ways to respond to the marketplace establishment. GameStop Mania Have you heard about what’s recently happened on Wall Street? At least for a week, the power shifted. Reports byThe Wall Street Journal,The Washington Post,andUSA Todayall...
Feeling pretty clever for how you rode the GameStop train? You should. But don’t assume you can do it again. Your bet — because face it, it was kind of a bet — could just have easily not paid off. Only in hindsight could anyone have predicted what happened...