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470- FROM THE VAULT: GameStop and Short Squeezes

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Manage episode 423501498 series 2414871
Content provided by Phil Town and Danielle Town. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Phil Town and Danielle Town or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

The market is a thrilling arena for investors in the internet age. Due to the previously unimaginable connectivity afforded to the public by the internet and social media, we’ve seen coordinated efforts by online investors who’ve used message boards to engineer short squeezes against hedge funds, like with the highly-publicized story surrounding GameStop.

A short squeeze occurs when investors betting on a stock's decline are forced to buy shares to cover their positions, driving the price up further. This phenomenon was vividly demonstrated with GameStop, causing substantial losses for hedge funds and prompting a regulatory response.

In this week’s throwback episode, we check back on the early days of the ongoing GameStop/Reddit saga to see where it all began.

To discover your investing weaknesses and learn how to manage your money smarter, click here to take the Rule #1 Investing Personalities Quiz: https://bit.ly/468F8eW

Topics Discussed:

  • Reddit
  • GameStop
  • Robinhood
  • Shorting stocks
  • SEC regulation

Resources Discussed:

Learn more about your ad choices. Visit megaphone.fm/adchoices

  continue reading

480 episodes

Artwork
iconShare
 
Manage episode 423501498 series 2414871
Content provided by Phil Town and Danielle Town. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Phil Town and Danielle Town or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

The market is a thrilling arena for investors in the internet age. Due to the previously unimaginable connectivity afforded to the public by the internet and social media, we’ve seen coordinated efforts by online investors who’ve used message boards to engineer short squeezes against hedge funds, like with the highly-publicized story surrounding GameStop.

A short squeeze occurs when investors betting on a stock's decline are forced to buy shares to cover their positions, driving the price up further. This phenomenon was vividly demonstrated with GameStop, causing substantial losses for hedge funds and prompting a regulatory response.

In this week’s throwback episode, we check back on the early days of the ongoing GameStop/Reddit saga to see where it all began.

To discover your investing weaknesses and learn how to manage your money smarter, click here to take the Rule #1 Investing Personalities Quiz: https://bit.ly/468F8eW

Topics Discussed:

  • Reddit
  • GameStop
  • Robinhood
  • Shorting stocks
  • SEC regulation

Resources Discussed:

Learn more about your ad choices. Visit megaphone.fm/adchoices

  continue reading

480 episodes

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