Ella Posted June 1, 2021 Share Posted June 1, 2021 I want to know what happened with Gamestop stock earlier this year. I still can't make sense of it. I know this is old news at this point but I feel like if I understood what happened with this, I would have a better understanding in general of stock and the stock market. 1 Quote Link to comment Share on other sites More sharing options...
Rachel Posted June 1, 2021 Share Posted June 1, 2021 Yeah I don't fully understand what happened. All I know, is that somehow, a group of people on reddit, invested so much in the gamestop stock that it went up in price. It made people a ton of money. Then the people selling stock, removed the option to buy it, and people got mad and they had to put it back up. It was weird. I guess rich people have been doing this for many stocks, and people just figured out they could do it with Gamestop and make a ton of cash. 2 Quote Link to comment Share on other sites More sharing options...
James Posted June 1, 2021 Share Posted June 1, 2021 Here is my understanding of the situation. There were a few large institutions that were shorting the stock. Which makes sense because GameStop is a dying business model with games easily being able to be delivered digitally in this day of age. The short float was HUGE! A bunch of retail investors (people like us) gathered together and started buying shares. Which caused the shorts to have to exit their position. So the stock skyrocketed. It was quite wild. In reaction to this some of the newer brokerages suspended trading which impacted the retail investors. You were only able to buy the stock and not sell it for a day or two. This allowed the large institutions to adjust their positions. There was a lot of information exposed during this full process and we got to see how shady wall street really is. 2 Quote Link to comment Share on other sites More sharing options...
Mila Posted June 2, 2021 Share Posted June 2, 2021 I actually loved watching this unfold! It was an amazing display of how the markets are easily manipulated and it opened the eyes of millions to the fact that every day people are not meant to be doing this thing. That Robinhood stock app actually started blocking people from investing because they were told to by the rich people who make their money off the stock market. I don't fully understand stock myself but I know more about it now than I did before. 1 Quote Link to comment Share on other sites More sharing options...
Ella Posted June 7, 2021 Author Share Posted June 7, 2021 Is the AMC thing that started happening last month similar to this then? I honestly have nothing else to reference. I just don't understand stocks enough! lol So if enough people invest in a stock, they make it worth more at which point investors "pull out" at a profit which brings the value back down again? 1 Quote Link to comment Share on other sites More sharing options...
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