WTF is going on with GameStop, WallStBets, and the Stock Market?

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Manage episode 283490884 series 2843199
By Nika Farb, Katie Karlos, Nika Farb, and Katie Karlos. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.
Once again we see how powerful social media is in our modern day. A retail investor posted about how the stock was undervalued on a public forum, WallStBets, and brought to light GameStop (GME) was shorted at 120% of the available shares by hedge funds. 4 Million people follow this forum. Retail investors, and FOMO investors bought the stock, the stock price shot up. Listen to hear what happens next.
2:20 - What is Shorting?
8:00 - How did GME blow up?
11:20 - What is a Short Squeeze?
15:04 - Free Markets
15:52 - Correction - The Stock was shorted 120% of the available shares, not 120x
17:33 - Importance of Long Term Investing
23:00 - What Happened with Melvin Capital

21 episodes