Reflection paper
Hedge Fund VS An Army Of Amateur Investors
What happen to gamestop stocks?
What is gamestop?
Struggling financially video game company
Battle between an army of amateur investors and multi-billion-dollar hedge funds.
$13 billions Melvin Capital (Hedge Fund/ Short Seller)
WallStreetBets (Amature Investor)
What is short-seller and how do they make profit?
Borrow stocks from the Broker
Sell the stocks at current high market price
Buy the stocks at lower price
Return the shares back to the broker
WallStreetBet
Acting as a unison
8.7 Millions followers
Causing massive losses for short-sellers
To the moon
Robinhood market manipulation
Large Individual trader market
banned individual stock traders to buy GME and other booming stocks for a couple of days.
AMC, BlackBerry, American Airline, Bed bath and beyond, Nokia
Meme stock
Investors were blaming robinhood for market manipulation
Trying to protect hedge funds
Is the market really “FREE”?
Possible stock market bubble
SP500, NASDAQ and Dow Jones set a new all time high
Fed are keep pouring money in stock market
Market won’t always keep going up
Possible stock market bubble pop in the near future
Work Cited