WallStreetBets vs Wall Street

By Amy Miller

In January 2021, members from the popular subreddit R/WallStreetBets caused GameStop stock to explode.  After reaching a high of four hundred and fifty dollars, Robinhood limited its users from joining in the frenzy.  Billionaires cried on national television, millions poured their life savings into GameStop stock, and poor millennials became millionaires overnight.  Congress turned their eyes onto Reddit user DeepFuckingValue (Keith Gill), R/WallStreetBets, and the economy.  

• Language: English
• Publisher: Tiffany Hughes
• Release date: Feb 20, 2021
• ISBN: 9781393546764

Amy Miller

I like to make people irrate, happy, and think. Feel free to let me know how my books make you feel through posting a review.

Book preview

INTRODUCTION

GameStop, a brick and mortar video game store, has been at the forefront of one of the biggest news stories in the financial world for the last couple of weeks. Social media investor behavior drove GameStop's shares to massive heights, forcing hedge funds of Wall Street to pay huge amounts of cash.

In addition to Blackberry, AMC Theatres and Nokia shares, the price of the video game company's shares was highly volatile after a Reddit group known as WallStreetBets, urged individuals to purchase stock in these firms resulting in skyrocketing stock prices. In the financial world, the social media rally is without precedent.

Not at all complicated is the story of what happened. This begins with understanding the term' short selling.' You can short a stock market stake, which means selling something you don't own. But then you still have to 'close' the spot, which implies later buying back the same position.

Then they find out, 'Oh, here's a company that doesn't make a lot of sense when hedge funds and institutions think about shorting a role. When we short-sell their stock, we can make money. The sale of shares should bring down the price and then we could buy back a pretty penny portfolio on the dollar.

Social media people and gamers said, 'Oh, we're going to revolt. We will start buying this stock.' and so all short-sellers had no choice but to purchase at higher rates as GameStop stock began to increase.

It worsened when the short-sellers were forced to purchase the stock at higher prices and then the stock price increased even further. The market hysteria was hitting its zenith at that point.

GameStop operates in a sector that many perceive to be in decline,. They're in the brick-and-mortar video game business and that's going away slowly, like what happened not too long ago to Blockbuster video.

You have many gamers who may have an emotional connection to the company, but the company itself is losing money doesn't change that. Soon, the company will possibly be forced to cease operations.

This GUIDE explores the GAMESTOP stock market and offers advices for new and existing stock market investors on the danger of risking more than they can afford to lose.

Let's get started

CHAPTER 1

What Is The Stock Market?

Astock market or stock exchange is a public good (not a physical structure or an individual entity but a loose network of economic transactions,) an entity of a company's shares (Actions) and its derivatives at a negotiated price, which are both stock exchange-related securities and private offerings.

Donations are among the most important sources of fundraising for businesses. This enables businesses to trade or raise additional financial resources for expansion by selling ownership shares in the company's stock sector.

The cash exchange offer provides investors with the ability to sell securities quickly and easily. Compared to other liquid investments, such as real estate, this is an interesting characteristic of equity investments.

For example, share prices on the rise appear to be related to increased business activity and vice versa. Share prices also influence the domestic economy and demand. As a result, central banks tend to keep an eye on the control and conduct of capital markets and, in general, on the operations of a satisfactory system of financial resources.

A stock that may not have to be negotiated with short sales by a broker, margin trading may be able to purchase shares with borrowed funds, or options may manage a significant part of the stock is far below the sum that needs direct buying