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GameStop Report: How Did Its Share Price Go From $ 17 To $ 400? – Last minute world news

The US Securities and Exchange Commission (SEC) said markets performed well during the volatility of the shares of video game retailer GameStop in January and that short selling was not the primary reason for the company’s unprecedented surge in shares.

The SEC has released its expected report on the GameStop wave on the American stock market.

The report in question evaluated the challenge a group of retail investors who had come together on social media in January took on professional investors for GameStop stock.

The SEC report said the market’s underlying infrastructure remained “solid” despite the unusual volatility of GameStop stock.

The report stated that the primary reason GameStop’s share price rose to $ 400, which was previously around $ 17, was not “short selling,” and positive sentiment towards GameStop among investors had an impact on the company Rise in share price.

It was found that no evidence could be found to support claims that some mutual funds were trying to make money from the fall by using the “short position” method in GameStop stocks.

The report failed to address questions about whether speculators are using social media to create positive sentiment for the GameStop company, and whether hedge funds are pushing stock trading platforms like Robinhood and Interactive Brokers to restrict purchases of GameStop stock.

GAMESTOP EVENT

With the transactions in GameStop shares in the last week of January, the conflict between small and large investors on the American stock market came to the fore.

GameStop, the US video game seller, whose stock market has fallen due to economic troubles, was one of the most “sold short” stocks late last year, the stocks that investors had forecasted further decline.

Melvin Capital, one of the mutual funds, tried to make money by selling short on the drop in GameStop stock, which was around $ 17-18 last year, but the group of investors that came together on the social media platform Reddit, recognized this situation and began buying stocks in an organized manner.

While amateur investors, organized through the WallStreetBets forum, bought GameStop stock and increased their price, the stock price, which was around $ 17-18, was over $ 400.

GameStop stocks, which Wall Street predicted will continue to devalue the value of large investment companies, rose nearly 1,700 percent last month on large-scale purchases by retail investors, causing investment companies to lose.

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