Stock Market, Stock Markets the Big Easy Way, Wall Street
Gamestop trading action pits powerful against powerless
Jan
A popular rebellion, organized by the powerless against the powerful. It might have failed in Washington, but it certainly seems to be working on Wall Street.
Driving the news: The market value of GameStop closed at more than $10 billion on Tuesday, on record volume of more than $26 billion.
How it works: Thanks to Robinhood and other stock-trading apps, trading options in GameStop (or BlackBerry, Bed Bath & Beyond or any other smallish company Wall Street traders have bet against) is easy, fun, and carries an irresistible commission of exactly $0.
The bottom line: Short-selling — betting that a company’s stock is going to fall — is a crucial element of efficient markets. But, thanks to Reddit, it has also never been more dangerous.
This content was originally published here.
