470- FROM THE VAULT: GameStop and Short Squeezes
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\u2019ve seen coordinated efforts by online investors who\u2019ve used message boards to engineer short squeezes against hedge funds, like with the highly-publicized story surrounding GameStop.\nA 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.\nIn this week\u2019s throwback episode, we check back on the early days of the ongoing GameStop/Reddit saga to see where it all began.\nTo discover your investing weaknesses and learn how to manage your money smarter, click here to take the Rule #1 Investing Personalities Quiz:\xa0 https://bit.ly/468F8eW\n\nTopics Discussed:\n\nReddit\n\nGameStop\n\nRobinhood\n\nShorting stocks\n\nSEC regulation\n\n\nResources Discussed:\nChamath Palihapitiya interview\n\nLearn more about your ad choices. Visit megaphone.fm/adchoices