Bunch of people on reddit wallstreetbets saw that some hedgefunds had shortsold a shit ton of GameStop, expecting it to crash. That pissed them off.
So they got on a bandwagon and bought a shit ton of the short sold stock. Which overinflated the value. That sub has 2.5 million subscribers.
Anyway, there are people on there who are dumping cash back into it. Free market supply and demand. There was a supply, people were demanding it, and the stock values went up.
So, is there a way to do this to an evil company? No. Buy enough shares to get yourself a seat on the board.
As for learning how to trade, go back to reddit. Don't sign up. Just read wallstreetbets. Get into day trading if you want. I did (as of yesterday). My $25 that I put into gamestop bought me 1/10 of a share. it's worth $50. Paid more than the lottery. Robinhood is a good place to start too. It's an app for microtransactions of stocks.
In another life I was a financial planner, so, I kinda have an understanding of some of this.
Yeah, I was replying to OP's question which was, what happened. You're right, though. This won't fly. I believe the technical term is market manipulation. You get a bunch of people to all buy the same stuff, overinflating the value, and then sell it off.
Agreed. One does not want the SEC/FBI/IRS teaming up to give you an anal covid swab.
And, by the way, I wasn't trying to come across saying it wasn't "questionable" behavior. I was just trying to lay out the facts of the case as best I understood them.
We SHOULD all know how to invest and trade a bit. It can be fun and rewarding, if you do it right. But you have to stay within the law.
Bunch of people on reddit wallstreetbets saw that some hedgefunds had shortsold a shit ton of GameStop, expecting it to crash. That pissed them off. So they got on a bandwagon and bought a shit ton of the short sold stock. Which overinflated the value. That sub has 2.5 million subscribers. Anyway, there are people on there who are dumping cash back into it. Free market supply and demand. There was a supply, people were demanding it, and the stock values went up. So, is there a way to do this to an evil company? No. Buy enough shares to get yourself a seat on the board. As for learning how to trade, go back to reddit. Don't sign up. Just read wallstreetbets. Get into day trading if you want. I did (as of yesterday). My $25 that I put into gamestop bought me 1/10 of a share. it's worth $50. Paid more than the lottery. Robinhood is a good place to start too. It's an app for microtransactions of stocks.
In another life I was a financial planner, so, I kinda have an understanding of some of this.
I don't understand any of this, but wasn't that exactly what the hedge fund was doing? The crime is messing up their manipulation?
Yeah, I was replying to OP's question which was, what happened. You're right, though. This won't fly. I believe the technical term is market manipulation. You get a bunch of people to all buy the same stuff, overinflating the value, and then sell it off.
Agreed. One does not want the SEC/FBI/IRS teaming up to give you an anal covid swab.
And, by the way, I wasn't trying to come across saying it wasn't "questionable" behavior. I was just trying to lay out the facts of the case as best I understood them.
We SHOULD all know how to invest and trade a bit. It can be fun and rewarding, if you do it right. But you have to stay within the law.