As the pandemic arrived, the company’s fate appeared to take a turn for the worse. This week, the investing world looked on with a mix of admiration and horror as members of a Reddit forum devoted to stock trading collectively … A big reason for that is how deeply hated GameStop's stock was by hedge funds and other professional investors on Wall Street. Well, the answer is quite obvious. What happens when Hedge Funds plan to sell Stock Options at $2/ea, but then a massive army of continually growing Internet morons’ band together and drive the price up to $483? Over the long term, a stock's price tends to track with the company's profits, and GameStop's prospects for earnings remain cloudy. A big reason for that is how deeply hated GameStop's stock was by hedge funds and other professional investors on Wall Street. The Robinhood-GameStop inventory market mania has taken Wall Avenue by storm and drawn backlash from elected leaders on each The Robinhood and GameStop Stock Saga Explained - Options Call Today Wednesday, April 7, 2021 The cost of GameStop stock fell to $3.25 per stock. Short sellers are betting that the stock they sell will drop in price. That’s for a number of reasons: the pandemic generally hurting businesses, movie theaters remaining closed, a shift away from hard copies to digital versions of games, etc. GameStop is a company that owns stores, many based in malls, that sell video games, consoles, peripherals and assorted knickknacks and merchandise. A big reason for that is how deeply hated GameStop's stock was by hedge funds and other professional investors on Wall Street. Basics of Short Selling. Reddit, social media, and now Elon Musk are involved.And somehow, this is all for GameStop, the beleaguered video games retailer notorious for giving gamers pennies on the dollar for their used software. The recent meteoric rise in shares of brick-and-mortar video game retailer GameStop Corp (GME) has been one of the most interesting stories so far in 2021. NEW YORK — It's not just you. And this stunt doesn’t sound illegal, too. Little-guy investors are supposedly cratering billion-dollar hedge funds. A big reason for that is how deeply hated GameStop's stock was by hedge funds and other professional investors on Wall Street. gamestop story explained. Simply Explained – The GameStop Situation By Charlie Perkins on Saturday, January 30, 2021 The news has been full of stories and interviews surrounding the stock market at … Share. The GameStop fiasco, explained. The success of GameStop would also lead to a sharp increase in stock price for AMC (AMC), BlackBerry (BB) and Macy’s (M). A big reason for that is how deeply hated GameStop's stock was by hedge funds and other professional investors on Wall Street. Share … If the stock hits that target, investors can reap a bigger return than if they simply bought a share. Extra worrisome is the long-term shift by clients away from brick-and-mortar shops and towards shopping for video games on-line. A big reason for that is how deeply hated GameStop's stock was by hedge funds and other professional investors on Wall Street. Then you hope the stock’s price falls such that you can buy the stock back at a lower price and return the shares you borrowed to your broker but keep the difference” As explained by the post, these hedge funds essentially shorted Gamestop’s stock which means that they were intending for them to go down and claim back the difference. The peak of the VW squeeze was reached when the demand for shares became surpassed by the supply of those shares. Many were betting on GameStop's stock to fall by “shorting” it. A big reason for that is how deeply hated GameStop's stock was by hedge funds and other professional investors on Wall Street. But these days, GameStop is … Explained: Making sense of the Reddit-fuelled GameStop stock surge The GameStop saga seems to have turned into an international sensation that has stunned big investment firms on Wall Street and puzzled the trading community around the globe. Jan. 28, 2021 It’s called a short squeeze, and it involves investors betting on which way a stock will go — up or down. Let’s dig into how the posters became the wolves. GameStop, a company that was expected to close hundreds of stores in 2021, has made a stunning comeback in the stock market.And it’s all thanks to an army of Reddit users who were gutsy enough to take on big Wall Street. GameStop explained: Fandom of politics, Wall Street, stocks. Beyond Exchange (BE) is a Cultural & Training wing of Beyond Management Group, UK. GameStop is an American video game, consumer electronics and gaming merchandise retailer. Once it drops, the investor can then buy the stock back and return it to the original seller at a profit. The perception (keyword: perception) on Wall Street was that physical video game sales were dead and GameStop didn't have the capability to adapt. This is simply a new version of the traditional story about hubris, ignorance and greed. This is part of the game, and just because it's a new component doesn't make it any worse than what hedge fund managers do. That’s a problem when some huge news about the stock market comes along. You might have seen it on the news. A big reason for that is how deeply hated GameStop's stock was by hedge funds and other professional investors on Wall Street. The GameStop Debacle Explained. MoneyMade helps you organize all your wealth in one place and keep regular track of your net worth. Running Time: 11 minutes. The more GameStop’s future looked bleak, the more people sold their GameStop stock, decreasing demand. Instead, as explained last week, “short squeeze” is simply the term used to describe what happens when a particular stock or security is over-shorted, leading to an increase in the stock price. Much, much lower. Now that we’ve explained the background on shorting, let’s dive into more details about what’s happening with GameStop stock in the past week. In doing so, they borrowed shares of the company, sold them, then waited for the stock to drop in value so that they could buy the ‘borrowed’ shares back at a lower price, return them, and pocket the difference. The difference between the sell price and the buy price is the profit. Many were betting on GameStop's stock to fall by “shorting” it. GameStop Hedge Fund Stock Market Fiasco Explained by the Internet; News GameStop Hedge Fund Stock Market Fiasco Explained by the Internet. GAMESTOP shares more than doubled yesterday afternoon, echoing the frenzy that saw the stock soar 700% last month after it was targeted by … First, let me say GameStop is a pig stock. ... GameStop's stock price is almost definitely the result of an investor-driven bubble. Explained: How an online forum called Reddit boosted a struggling company's stock by 1700 per cent. Facebook The struggling video game retailer's stock has been making stupefying moves this month, wild enough to raise concerns from professional investors on Wall Street to the hallways of regulators and the White House in Washington. With malls closed, a retail business like GameStop seemed like a pretty obvious target for short sellers ― including Melvin, which bet big that the company’s stock price would fall. Short selling – or shorting – is placing a bet that a stock declines in value. A big reason for that is how deeply hated GameStop's stock was by hedge funds and other professional investors on Wall Street. Related reviews. The GameStop stock surge has benefited small-scale investors, many of them surprised at their unlikely windfalls. Renewed interest in video games, brought on by the Covid-19 shut downs, provided a small boost to GME stock in August 2020. That’s exactly why the stock has skyrocketed. Jan 28, 2021 gamestop, stocks. Apart from this tale of human nature, the center of the story isn’t GameStop or Reddit; it’s Robinhood. We use cookies to ensure that we give you the FUNKIEST experience on our website. Many were betting on GameStop's stock to fall by “shorting” it. CONNECTICUT, USA — A new generation of stock traders trying to change the rules of the game. Sign up for MoneyMade! by source January 30, 2021. I know a lot of people don’t really understand what happened and so I was searching for a good way to explain it in simple terms. GameStop is a company that owns stores, many based in malls, that sell video games, consoles, peripherals and assorted knickknacks and merchandise. Here's the gist: Wall Street has witnessed an uprising of amateur investors who … There’s no simple reason that Gamestop (NYSE: GME) became the subject of the most high-profile short squeeze anyone can remember. The GameStop Short Squeeze Explained: Christopher J. Gan. Image credits: redditlurker2001 You’ve got to admire the imagination. Many were betting on GameStop's stock to fall by “shorting” it. Investors, both big and small, started buying GameStop stock, and its price increased from a mere $17 to a staggering $469! What's going on with GameStop's stock doesn't make sense to a lot of people. People also searched for gamestop explanation, 492-935-7733 knowledgema, gamestop explained simple terms, gamestop reddit explaination simple, gamestop story in simple explanation, Simple explanation of gamestop, simple way to explain the game stop, what is a short reddit Undoubtedly, the collective ability of the public showed enough strength to … For those that don’t really know much about what’s going on, essentially these billion dollar hedge funds were betting that GameStop (GME) was going to continue to lose value. A multitude of short-sellers, including the likes of the hedge fund Melvin Capital, have been betting that stock prices like GameStop and AMC will decrease. This was seen as a golden opportunity by the Hedge Fund named Melvin Capital who made a bet against GameStop stock by short-selling its stock. ... As I see it, this is simply the machinations that happen inside the investment machine when you get a lot of smart people with their Master’s in Finance or a PhD in Astrophysics who think they know more than they really do. The Gamestop Stock Incident Explained (and Why It Matters) February 5, 2021 March 10, 2021 Josh Lee gamestop , reddit , shortselling , stocks , wallstreet Over the past week, the financial world has been dealing with the fallout of Gamestop’s rising surge in stock price. Gamestop Stock Rise Explained Simply. The cost of GameStop stock fell to $3.25 per stock. The GameStop Short Squeeze Explained. If the stock hits that target, investors can reap a bigger return than if they simply bought a share. The thing is many Wall Street traders were expecting GameStop’s stock to fall even further and make a ton of money from said stock failing; this whole process of making money from a stock failing is known as short selling. GameStop stocks had been battling alongside different retailers for quite a long time, even before the pandemic hit. GameStop stock, which was only recently priced below $20 per share, saw its price climb as high as $350 on Wednesday, while on Thursday share prices ranged from $112 to $483. The GameStop (GME) Situation Explained If you are seeing all of the news and posts all over Reddit about GameStop (GME) and WallStreetBets, but don’t really understand it, I’ve done a bonus episode of The UK Money Podcast. And there’s a lot more involved than people simply buying a lot of stock of a company that’s fallen on tough times in recent years. GameStop, based mostly in Grapevine, Texas, sells video video games at greater than 5,000 shops, and the pandemic has been protecting clients away. Select Page. Reasonably, one can hardly blame people for wagering against the company in the hope of hefty gains by going short. In the GameStop short squeeze, Melvin and Citron (and possibly others) shorted GameStop’s stock. GameStop was the single most traded name in the U.S. stock market on Tuesday, topping even mega-cap companies like Tesla and Apple, according to … This is all powered by small investors who noticed that large investors had bet billions that GameStop’s stock would fall. Simply put, it is mathematically impossible to cover more than 100% of a company’s outstanding stock. But if it doesn't, it can mean a total loss. If the stock hits that target, investors can reap a bigger return than if they simply bought a share. To put it simply, short-selling is essentially gambling that a stock’s price will drop. If the stock hits that target, investors can reap a bigger return than if they simply bought a share. Here, demand represents 12.8% of their stock … If the stock hits that target, investors can reap a bigger return than if they simply bought a share. Here’s an overview of the mechanics—or the plumbing—behind your trades.Let’s dive in. No, this isn’t a bad thing. It went from $4 a share all the way up to $40. Many were betting on GameStop's stock to fall by “shorting” it. You can easily store 50+ games, so you don't have to delete your favorite classic games to make room for the latest (average game size is 35GB to 50GB). It would also lead to valuation increases in some cryptocurrencies such as Dogecoin. Gamestop investors' war on short selling: Explained simply Are you hearing about the Gamestop stock saga and market manipulation? Through viral posts, stock prices grew, forcing large investors to spend billions of dollars to cover their losses. Some are trying to position the GameStop populist uprising as something bad, even a "Ponzi Scheme." Gamestop Explained By Matt In The Hat // 0 Comments // Finance, ... fund called Melvin Capital wrote out some douchey article about how the smart investment move would be to short-sell GameStop stock. Illegal market manipulation on a scale never seen before. I call it GameJunk. You might have heard it that friends that always has “hot investing tips.” GameStop stock, GME, or “Gamestock” as Elon Musk called it, has been soaring to unbelievable heights the past few months.In November, shares were trading around $11–12, but as of last Friday they had reached an unbelievable $65 a share and have only continued to climb since. Shorting relies on an entirely different concept, and here is how it works. Many were betting on GameStop's stock to fall by “shorting” it.
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