The Storyline
→ [wikipopup]Reddit[/wikipopup], basically an online App with a “massive collection of forums where people can share news and content or comment on other people’s posts.”, encourages retail investors to face off professional hedge fonds by buying shares of [wikipopup]GameStop[/wikipopup]. This movement immediately gets vast support on Discord and Facebook as well.
→Hedge funds make a huge loss of investment capital within hours, as they had bet on a loss of the GameStop shares.
→Due to the turmoil of the situation, online trading apps like Robinhood temporarily suspend the trade of the Gamestop shares, respectively restrict the purchase of it.
→[wikipopup]Senator Elizabeth Warren[/wikipopup], an outspoken defender of consumer rights and frequent critic of big banks and hedge funds, is calling for the [wikipopup]Securities and Exchange Commission[/wikipopup] (SEC) to investigate.
Headlines:
GameStop Stock Frenzy May Not Be So Bad for Wall Street
While some hedge funds have been hit hard, ‘Wall Street’ writ large could well profit from the GameStop saga
The wave of populism shaking Wall Street
Reddit investors’ real power is over Wall Street’s future behaviour
Trading against hedge funds will not deliver social justice, but a mass movement could curb corporate excess“
No, Wall Street Bets is not a revolution
But it does make for a good narrative, granted.
Occupy Wall Street spirit returns as traders upset the elites
Reddit’s army of ‘degenerates’ challenges the financial establishment
GameStop is just latest sorry case of misallocated capital
https://edition.cnn.com/2021/02/01/investing/gamestop-robinhood-stocks-explained/index.html
Gamestop proves the death of the individual investor was greatly exaggerated
The rise of Reddit’s WallStreetBets crowd and others taking advantage of no-fee trading on brokerages like Robinhood is a sign that some investors aren’t content simply owning funds that track the S&P 500 and Nasdaq 100.
What Wall Street’s ‘Short Squeeze’ Means for Investors and Regulators
Wharton’s Sasha Indarte speaks with Wharton Business Daily on SiriusXM about the GameStop stock ‘short squeeze.’
Vocabulary:
ailing hedge fund – means: struggling hedge funds
bail out – means: to rescue somebody, for example by paying a security
[Wall Street] behemoths – means: Wall Street giants
egregious – means: unbelievable, scandalous
fraud – means: if you fake somebody else’s signature, that’s fraud.
frenzy – means: craziness
no-fee trading – means: zero costs trading
palpable – means: you can feel it,
relish – means: joy
retail investor – means: a single person who invest typical a small private amount
short squeeze – means: to get someone into trouble, to corner someone
to subvert, subverting – means: to infiltrate, to undermine
valuations – means: estimates