Connect with us

Hi, what are you looking for?

US News

AP Explains: Shorting and ‘democratizing’ stocks

AP Explains: Shorting and 'democratizing' stocks

AP Explains: Shorting and ‘democratizing’ stocks

Across most of America, GameStop is just a place to buy video games. But on Wall Street, it’s become a battleground where swarms of smaller investors see themselves taking an epic stand against the 1%. (Jan. 28)

Some big institutions such as Citron Research and Melvin Capital had placed bets that GameStop shares would fall as the company tries to transform itself from a bricks and mortar retailer to a seller of online video games.

GameStop stock has rocketed from below $20 earlier to close around $350 Wednesday as a volunteer army of investors on social media sites like Reddit challenged big institutions who had placed market bets that the stock would fall.

The action was even wilder Thursday: The stock swung between $112 and $483. At midday it was down 27% at $255.

“You’re seeing a large army really of individual investors who have decided that they want to take on the big Wall Street hedge funds,” said Seth Sutel, the deputy financial markets editor at The Associated Press.

Robinhood, an online trading platform, is now moving to restrict trading in GameStop and other stocks that have soared recently due to rabid buying by smaller investors.

The company has forced huge, ground-shaking changes for the brokerage industry, such as its decision to charge zero commissions for customers trading stocks and exchange-traded funds.

That’s why some users took Thursday’s actions as an affront.

“In a way, there really is a kind of an Occupy Wall Street aspect to this,” Sutel said.

Subscribe for more Breaking News:

You can license this story through AP Archive:

#GameStop #GME #Reddit


Click for the latest news…

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

US News

Joe Biden Is The Next President of The United States   With 20 Electoral Votes in favor of Joe Biden from the State of...


Timothée Chalamet Spotted With A Hickey On His Neck | TMZ TV Although Timothée Chalamet and Eiza Gonzalez’s summer fling ended like a while...

US News

Lil Keke praises Drake for his love of DJ Screw Texas rap icon Lil Keke praises Drake for helping keep Houston rap culture and...


Kourtney Kardashian and Travis Barker Are Finally Dating! | TMZ TV They shared similar photos from Kris Jenner’s Palm Springs, Calif., vacation home over...

US News

Wisconsin sets new record for coronavirus deaths Wisconsin Gov. Tony Evers begged people to skip Thanksgiving celebrations with anyone from outside their households as...

US News

Iota avanza rumbo a Centroamérica como huracán categoría 5 El huracán Iota gana fuerza con rapidez a su paso por el oeste del Caribe...


Lady Gaga Turned Her Trip to The Ballot Box Into a Catwalk | TMZ TV Leave it to the theatrical Lady Gaga to turn...

US News

Florida prepares to distribute 1st vaccine doses Florida will receive 179,400 doses of the Pfizer vaccine for COVID-19 within a week and use them...

US News

Researchers say new whale species found off Mexico Researchers say new whale species found off Mexico Subscribe for more Breaking News: Website: