Gamestop is one of the hottest stock in the news right now, But should you jump in How did thestock suddenly go up two thousand percent Was it? Really just retail investors buying it allup?
It’s not that simple Let’s see how thisexplosion happened, We see that in a monthGamestop shot up one thousand six hundred percent.
But at the highest point. It went up almost twothousand five hundred percent.
This is a story. Ofhow retail investors were able to beat Wall Street.But. How did they come up with? So much money Well, actually, it’s not that simple!
These retailinvestors served as a catalyst for the explosionin price that happened afterwards from a feedbackloop that happens in the stock market.
Confusing enough, Let’s get into it These retail investorssaw that a lot of people on Wall Street wereshorting, Gamestop So you can think of shortinglike us going to the bank to borrow money oninterest.
However, instead of borrowing, money, they’re, borrowing, a stock on interest and thenselling that stock to someone else at the marketprice For example, ten dollars and hoping the price will godown so that they can buy it back at a lower pricein, the future, For example, five dollars and thenearn the difference.