I may be wrong here, but, I hear there was this massive thing in the GameStop stock market in the US may be months ago, and I'm not a citizen there, so I don't know much about it, but apparently, the whole people buying stocks to the point the government had to kick in all started from this one post on Reddit as a joke. The stock market seems to be still going up for now, and people are probably still buying shares. If you know anything about it, would be cool if you could educate more. And, since this was I think, at the start of the year, and its kinda late now, I was just wondering if its still possible to buy shares, which I am not gonna.
Can't say I understand anything about it, but I can totally assure you without a shred of doubt that the safest investment in the world that will guaranteedly give you tons of profit, is to invest in doge money~
This really isn't the place to be asking for stock trading advice. But I personally wouldn't advise trading meme stocks, ESPECIALLY if you're not based in the US. Here's how overseas brokerages work. They take your order, then route it to a major (or even minor) brokerage in the US to place the order. A US brokerage may/may not have existing shares in their portfolio to transact with their clientele. If they don't, they buy it off the open market. Depending on the status of your local brokerage AND US brokerage, they may be low on the totem pole for transacting these stocks (it's NOT a first-come-first-serve basis), or their spreads may be unequal compared to bigger brokerages. You can see where shit starts to break down during periods of hyper-volatility, especially on meme stocks. The quants and algos that trade these stocks work in milliseconds (these computerized systems are often physically located next to stock exchanges, just to gain a tiny advantage). On the other hand, your overseas order can take minutes, to HOURS to process during this time. When it's processed, it may not even be at the price you stated (esp if you entered a market order instead of limit order). Hence the whole debacle when Robinhood delayed transactions and lied that they were looking out on behalf of investors (to cover up their own failure to bank it).
Just gonna say my thoughts. Not very knowledgeable on stocks. A bunch of wealthy individuals were shorting, buying stocks paying later, on the premise that gamestop would go bankrupt. Some people caught wind of this and started buying. More people then jumped on the band wagon and started buying.
Here's a little explanation of what happened. In stock market, there's this thing called shorting, where brokers would get money when stock price fell. How? Example with banana 1. Brokers receive order from customer to purchase 100 banana priced $50 2. Brokers, from experience or insiders information, know the price for banana will fell to $20. So they buy the stock later when the price are down. 3. Brokers get $30 profit from the transaction Most people dislike shorting since some brokers would intentionally sell share that they know will fall later, making them raking in cash while the buyer will lost their money. What happened with game stock is that, most people know game stop will have their stock price fell and some broker are going to use shorting to get profit. Some reddit post encourage people to buy the stock and raise the price, so the banana scenario changed to: 3. Banana price get higher to $70. The broker, since they have to give the banana to their customer, have to buy banana at $70, making them lost money in the process. Did it really work? It kinda did, and it kinda not at the same time. For one, its a short lived victory for redditors since it's they did make brokers experience loss with the price hike, but the price are eventually going down and brokers will get money. by shorting. The huge price hike are also a gold mine for brokers to lure in more buyer. As someone working in finance industry, I want to say that broker/bank/leasing don't always have it easy you know? We deal with money, so people think all bank and financial institution are rich (in some way, they are, but that's because they know the field well. Heck, they work with money. Would you trust your money to people who can't manage money well?), but the actual profit margin aren't that high. Then again, my country ban shorting, so it might be different from other country. I don't think novel forum is the right place to receive stock advice, and even in finance focused forum you should be really careful since there's a lot of scammers. Personally, if you are not well versed in finance it's best for you to just choose stock as long term asset, and choose the one you will buy based on company's financial report and future development in mind. Why did I write this long ass post? Cause I am procrastinating from my class.
https://www.cnbc.com/2021/06/10/meme-stocks-hit-a-wall-on-thursday-with-gamestop-amc-and-clover-down-big.html
It was more than that those multimillionaire were pissed they lost hundreds of thousands of dollars and were trying to hit the pause button and trying to bring criminal charges to those redditors, but colluding to increase the price is not criminal offense many stock companies do it and many investors talk to each other and buy and sell stocks together. this time it was the rich who got slapped in the face and they wanted to strike back. If they could they would have passed a law on it so they could arrest those redditors.
I remember recently in may GameStop said theyre gonna make their own Ethereum nft market So that’s probably why it’s rising, ppl want in on the crypto
Basically the Gamestop deal was just the whole shorting stocks thing that was already explained perfectly. However, that kind of event where those Reddit people made tons of money off of buying those stocks is very rare and unlikely to occur often. It's not a good idea to invest like that imo if you have no idea what you're doing. It's not really about late/not late.
They don't need to. Remember why the price of Gamestop was falling? It's because these days people are all shopping online for games, they mostly don't go to those game stores to get physical copies nowadays. Has this changed with all the reddit hyping? No. Gamestop still is a store with no future in selling games, so once the hype is over, the price WILL crash again unless they have a new business model. So in the end, unless the Redditors bail soon, they will end up losing money since this price hike is nothing but an artificial spike. At this point in time, I'd recommend against it since it's already late in the game and the "correction" is going to happen soon. BTW, price manipulation IS a federal offence, https://www.classlawgroup.com/securities-fraud/stock/market-manipulation/ the problem is that reddit isn't really a plan, they just screamed "EVERYONE BUY GAMESTOP!!!" and everyone followed. That is hardly considered a plan or manipulation, just hype.
They didn't manipulate the price they just bought and sold the stock they sold they just colluded on when to sell that stock making many wealthy investors lose a lot of money. even now GameStop stock is nowhere near what it was since the bubble popped. And the hype wasn't just created out of nowhere it was many people including those investors who lost money they just were not expecting to be hit so hard and lose thousands of dollars. I have my own portfolio I don't gamble on short term stock I invest on long term stock and that money goes into my retirement fund I plan to retire at 40-45. and live off all that saved up dividends and money from retiring. I also plan to buy a few apartments and put them for rent which is a stable income too. the plan is to never have to work again.
ELI5 by an economics university student: A bunch of rich old farts bet gazillions of dollars against the value of Gamestop's stock value. (They basically made a self-fulfilling prophecy about GME stocks going down.) A bunch of autistic retards caught on, started sounding the bells, and prepared themselves for war. Purposely driving the stocks up. And cuz the rich old farts will have to lose the bet as a result of these actions, people have like a lot of confidence to keep the prices relatively up. Winning lots of money. Edit: The term 'autism' and 'mentally retarded' are just endearing terms we use to refer to each other at r/wallstreetbets btw As for financial advice... You probably should read a book or ten before trying to win against a rigged casino. Start with Global Economic History by Robert C. Allen and maybe in a few months you will only lose your mortgage by the time you call quits.
oh~ so bunch of big player gambling small player somehow know then call each other to follow then there fuss on it~