With the blowout Gamestop short squeeze, it’s difficult to decipher what actually matters in this madness, and what the impact will be long term.
The stock market just posted its worst weekly performance in three months after Reddit traders squeezed Wall Street’s elite out of billions of dollars, sending prices of heavily shorted stocks up to atmospheric new highs and fueling concerns over market frothiness–but experts seem in broad agreement that the bull market can rage on.
The big question surrounding this month’s short squeeze remains around how regulators–and prosecutors–will respond to the volatility, with lawmakers urging the SEC to act quickly on investigations into potential market manipulation by retail traders, brokerages and hedge funds alike.
00:12 — What is shorting stock and why do hedge funds do this?
00:41 — What happened to GameStop?
1:41 — How did hedge funds respond to retail investors?
2:47 — How big are the financial losses?
2:57 — The power of hedge funds.
3:55 — What were some big effects of the short squeeze?
5:14 — Why are retail investors mad?
6:04 — So, is this going to be illegal?
Read the full profile on Forbes: https://www.forbes.com/sites/jonathanponciano/2021/02/04/gamestop-meme-stocks-gme/?sh=45db16d43460
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