The GameStop company, a chain of video game and merchandising stores, has been in the news for a few days due to the spectacular rise that its shares have experienced on the stock market. But what happened?
1.- After the rise in GameStop shares are individual investors grouped in the WallStreetBets forum of Reddit
2.- Large investors were shorting GameStop and decided to take advantage of it to buy shares in the company. By investing in these stocks, the price started to rise very quickly.
3.- Began to buy back the shares they had sold to minimize losses, but that only caused the price to rise further. This is known as a short squeeze.
4.- As of today, February 5, 2021, the stock price has dropped. This has caused people who bought shares at the highest point of their value to lose a significant part of their investment due to the drop in price.
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1.- After the rise in GameStop shares are individual investors grouped in the WallStreetBets forum of Reddit
2.- Large investors were shorting GameStop and decided to take advantage of it to buy shares in the company. By investing in these stocks, the price started to rise very quickly.
3.- Began to buy back the shares they had sold to minimize losses, but that only caused the price to rise further. This is known as a short squeeze.
4.- As of today, February 5, 2021, the stock price has dropped. This has caused people who bought shares at the highest point of their value to lose a significant part of their investment due to the drop in price.
If they like me, reward me with a like or coins tradingview