What Is A Meme Stock?

Despite naming Gill specifically as a potential ringleader of the GameStop short squeeze, Rep. Maxine Waters has yet to specifically call in any executives of Citadel, Melvin Capital, or Robinhood to the upcoming Congressional Hearing. Gill, if attending, will present testimony to congress alongside key Wall Street Stakeholders on February 18. Wherever you are in the world, we will try to put you in contact with an adviser in your area whom we know personally, who shares our evidence-based investment philosophy and who we feel is best able to help you.

Protecting investors is one of the jobs of the SEC, but it’s not clear what the agency can do in a case like GameStop, said Chester Spatt, a former chief economist at the SEC and a finance professor at Carnegie Mellon University. Ziad Cohen, another Robinhood user, said he’ll ditch the trading portal once he sells his GameStop shares. He bought 85 shares last week, and says he is ahead by $20,000, even with the stock’s decline Thursday.

If you buy GameStop at $5 a share, the most you can lose is $5 a share. If you short GameStop as a lot of shorts did, if you short it at $20 a share and it goes to $290 a share, which is where GameStop was a few minutes ago, and you hold on to your short that whole time, you’ve just lost $270 a share. It makes it a very hard to be a short seller psychologically, it’s very hard to do. Last June, the company was responsible for 40 percent of shares traded by retail investors, the Financial Times wrote, citing Piper Sandler. It doesn’t just get Robinhood’s orders either — TD Ameritrade and Charles Schwab also work with Citadel Securities. “Not only are retail market makers getting increased trading volume, they are likely getting increased profitability per trade,” Tyler Gellasch, executive director of Healthy Markets Association, told the FT.

Read more about buy IGFollowers here. Before Citadel Securities dominated the retail market, it set about in 2008 to build an investment bank to rival the likes of Goldman Sachs. At least one analyst pointed to the fact that, as a hedge fund, Citadel was less regulated, giving it an edge over the U.S. investment banks overseen by the Federal Reserve. “An unregulated company coming into this sector has a real good shot,” Richard Bove, a financial-services analyst at Rochdale Securities in Lutz, Florida, said in 2010. Despite its efforts, Citadel was ultimately unable to break into investment banking, and decided to re-focus on electronic trading and market making.

When it turns gray, click the refresh icon that has appeared next to it or click the button below to continue. She spent a chunk of her childhood in a tiny town of 130 people before moving to San Antonio in junior high, where she lives today. She attended Texas State University and obtained a bachelor’s degree in English. Jada deeply cares about the environment and proves it by avidly recycling, reducing energy consumption, and avoiding single-use products. It is the essential source of information and ideas that make sense of a world in constant transformation. The WIRED conversation illuminates how technology is changing every aspect of our lives—from culture to business, science to design.

Burry’s play was to urge GameStop to use its cash to buy back stock, potentially retiring about half of its shares outstanding. In a sharply worded letter to GameStop’s board of directors, Burry called for the company to exhaust its $300 million buyback authorization. At the time of his letter GameStop’s entire market cap was just $300 million. However, investor Michael Burry, who had acquired a 3.3-percent stake in GameStop in 2019, criticized the short squeeze, stating that “there should be legal and regulatory repercussions”, and adding “this is unnatural, insane, and dangerous”. After GameStop’s stock closed up 92.7 percent on January 26, business magnate Elon Musk tweeted “Gamestonk!!”—a reference to the “stonks” meme rising in popularity at the time—along with a link to the r/wallstreetbets subreddit.

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