The problem with short selling is that since shares are borrowed, there can be a rare situation where more than 100% of the outstanding sharefloat is sold short. This is exactly what happened with GameStop’s stock. In January of 2021,nearly 140% of GameStop’s shares had been sold shor...
The 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 unsurprising repetition of past experience. Contrary to ...
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...
Can you explain what's taking place with GameStop (and others such as AMC, Nokia, and other legacy brands) stocks? The stocks have been extremely volatile. For example, GameStop (GME) has varied between $2 and $500 during the last year. As of late, it appears individuals have conspired...
Here's how it happened. FILE - An exterior view of a GameStop store on July 21, 2020 in Pembroke Pines, Florida. (Johnny Louis/Getty Images) Some renewed interest in GameStop GameStop's stock had been struggling for six straight years before a slight surge in 2020 and its...
Here's how it happened. FILE - An exterior view of a GameStop store on July 21, 2020 in Pembroke Pines, Florida. (Johnny Louis/Getty Images) Some renewed interest in GameStop GameStop's stock had been struggling for six straight years before a slight surge in 2020 and its...
The DTCC exists to protect investors and the stock market by ensuring brokers can actually back up the trades they make. It’s all about risk mitigation—and with Robinhood and GameStop, things got very, very risky. What happened there?
Plonk your cash down on a meme stock, crypto-currency, orSPAC. Drown in money. Simple! Not exactly. Because being inherently more furrowed-brow thanlaser-eyed, I can’t quite shake a nagging question. What happened next? Having fun staying poor ...
Another classic example of a gamma squeeze happened in early 2021 with Gamestop (GME). On January 25th, Gamestop’s stock increased 145% and was halted nine times due to excessive volatility. Many attributed the move to a short squeeze. True, it was a short squeeze, but it was more tha...
Proving that driving up the price of GameStop stock was a concerted effort with the intent to defraud is a tricky thing, Chaffee says. That said, although there might not have been a clear securities violation uncovered as of yet, the current highs of the GameStop stock are not like...