Yes, billionaires lost some money because of the GameStop surge, but they will still be exponentially richer than the overwhelming majority of Americans. Most notably, Tesla CEO Elon Musk’s net worth rose a shocking 524%. Billionaires added on average 57% to their net worth between March and December 2020 while American families struggle to put food on the table. While American billionaires gained nearly $1 trillion as a result of the pandemic, unemployment rates for low-wage workers have yet to recover to half the rate they were pre-COVID. While hedge fund managers rake in billions, the nation’s poverty rate is 12.2% with North Carolina standing at 13.6% and Watauga County at a staggering 23.3%. In the richest country in the world, 1 in 4 families have faced food insecurity this year. is facing the worst economic downturn since the Great Depression. Trading app Robinhood went as far as to remove GameStop from the app to slow the surge in a blatant attempt to protect the interests of the rich. Many affiliated with the affected hedge funds have expressed their anger over the situation, claiming the Reddit-organized stunt cost them billions. Hedge fund Melvin Capital Management lost 53% in January as a result of the surge. ![]() There is outrage among hedge fund investors and managers over the GameStop surge. ![]() for a long time: the stock market is a scam. GameStop Gate only brought to light what has been the reality in the U.S. Yes, you read correctly –– they agree, barring small investors from purchasing stocks is wrong. Ted Cruz and Tesla CEO Elon Musk all agree. So, why are brokerages like Robinhood trying to stop individuals from purchasing GameStop stock if it is their right, protected by law, to do so? The attempt to shield billionaire investors from the consequences of their own actions by suppressing small, everyday investors is a blatant and shameless act of market manipulation. But as outrageous as the situation is, the Reddit users who organized the stunt didn’t break any laws. GameStop’s stock surge, otherwise known as “GameStop Gate,” came as a shock to some, especially the affected investors. Investors consequently lose their money that they bet on the stock. So, what is a short squeeze? The simple explanation is when a heavily shorted stock, like GameStop, rises in value instead of falls. Investors borrow certain stocks and if the stock falls in value as they predict, they can buy it at a lower price and keep the difference. A short is a method Wall Street investors use to make money off of low-value stocks. GameStop is one of the most popular shorted stocks on Wall Street. On closer inspection, the anomaly turned out to be a coordinated effort by users on the social news site Reddit to short squeeze GameStop’s stocks. 27, GameStop’s stock soared in value, seemingly out of nowhere. ![]() GameStop isn’t exactly Fortune 500 material, so how did its stock manage to join the ranks of some of the nation’s most successful corporations, including Google, Tesla and Amazon?īetween Jan.
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