GameStop’s stock spike fueled by slang from Reddit’s WallStreetBets community. Here’s what it means – CNET

Some stocks are rising due to meme stocks. Here’s why.

Who would’ve thought a Reddit community could cause a stock to take off? Video game retailer GameStop’s stock surged to an all-time high of nearly $373 a share on Wednesday, having regularly been below $20 per share this year. Why is this happening now? Because small investors are using Reddit communities, like WallStreetBets (which grew by 500,000 users in the past three days), to drive “meme stocks” causing short sales and short squeezes. And it’s not just GameStop. Other companies, like AMC and Nokia, have also been affected by the coordinated surge.

No, this doesn’t mean you should necessarily drop everything and fully invest in one of these companies. Some are calling the market manipulation a “Ponzi scheme,” and the stock price will likely drop once the hullabaloo dies down. In fact, broker TD Ameritrade restricted trading of the GameStop and AMC stocks on Wednesday in response to the runaway growth. 

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Part of what’s so unusual about the GameStop stock spike is the vocabulary that’s been used to drive the trading action.

Here’s a sampling, and what the terms mean: 

Stonks is often associated with Meme Man, pictured.

This content was originally published here.