If you don’t know, some group on reddit has been able to get stocks raised on Gamestop, AMC and I think one or more other companies. These stocks have blown up, and the stock market seems to be quite mad. I honestly am confused about what is happening, and would like if someone can explain what happened with these stocks and why stock sites were banning the purchase/sale of stocks?
No I have not, but I have heard about it. It’s all confusing to me as well, but to my knowledge they got the stock to raise up after buying it at a low price, and then sold said stock I believe once it got high. That’s how I see it anyway. I could be totally wrong on that though.
So, here is the deal, basically numerous groups of subreddit groups oas well as other communities decided to short sell GameStop stock. The short positions caused the stock to fall dramatically. When the stock price fell other groups noticed and realized that the stock is being sold short and perhaps undervalued. Massive buying took place and all the short sellers needed to get back in the market and also purchase shares to cover their positions.
The great thing about these hyper volatile stock movements is great if you are on the winning side. If you are on the losing side you get get wiped out.