What is Going On Right Now on Wall Street with Gamestop Stock?
It's been all over the news these past few days: "David & Goliath Battle Raging on Wall Street", and "Hedge Funds Squeezes by Redditors". Are those headlines confusing to you?
Well, they confused me, too, because I know little about the stock market. I give my money to an investor and hope for the best. Now I am digging more into how investments work (or, sometimes, don't work). Here's an explanation as to what is going on with the Gamestop (and a few other) stocks:
In a nutshell, notasdfghjklx is saying that investors sometimes "borrow" stocks to sell in hopes that the price goes down so that when they have to "return" the stock, they can make a profit. Now that a group of Redditors know their game, they decided to act together to raise the stock price, which means that the hedge funds can't "return" the stock and make a profit: they will actually lose money.
It appears that the billionaire investors in the country are mad that regular Joes like you and me are trying to beat them at their own game.
I am hoping that this battle will help to tighten the gap between the haves and have-nots.