Cole2534
Diamond
- Joined
- Sep 10, 2010
- Location
- Oklahoma City, OK
For those that haven't seen, the app Robinhood allows free stock trades. Basic orders, options, whatever you want at no cost. This brought in a new wave of investors because it was easy to gamble without worrying about commissions, etc. Well within the last few months the folks on the Reddit page WallStreetBets (WSB) noticed that certain hedge funds were shorting the stock of failing companies in large quantity.
The largest in this case was Gamestop (GME), the big fund managers shorted the stock so far that there were shorts on 140% of the total available volume. Upon recognizing this, WSB put together a grass roots short squeeze and drove the price through the roof. GME was $4 a year ago, it spike nearly $500 in the last couple days.
Funds lost billions over night, in one instance it lost nearly 900mil in a day.
Today this all came to a head, you the public are no longer able to trade this stock under the normal SEC rules. Wall Street called in some favors and put a hold on it causing tha value to plummet. It's still way over valued, but they knowingly manipulated the market to protect themselves.
I think this is pure bullshit.
What does PM think about this?
Link to better explanation- Robinhood Users Are Furious Over Its Stock-Trading Clampdown
The largest in this case was Gamestop (GME), the big fund managers shorted the stock so far that there were shorts on 140% of the total available volume. Upon recognizing this, WSB put together a grass roots short squeeze and drove the price through the roof. GME was $4 a year ago, it spike nearly $500 in the last couple days.
Funds lost billions over night, in one instance it lost nearly 900mil in a day.
Today this all came to a head, you the public are no longer able to trade this stock under the normal SEC rules. Wall Street called in some favors and put a hold on it causing tha value to plummet. It's still way over valued, but they knowingly manipulated the market to protect themselves.
I think this is pure bullshit.
What does PM think about this?
Link to better explanation- Robinhood Users Are Furious Over Its Stock-Trading Clampdown