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Reuters
Photo from the archives – Wall Street.
The US “Wall Street” Stock Exchange is witnessing what looks like a “revolution” for amateur investors who have banded together via a social networking platform and made huge purchases that have caused losses of billions of dollars to whales .
Since the start of 2021, the share prices of dozens of companies have risen sharply, including the share of video game company “Game Stop”, which has risen wildly, surging more than a thousand percent over the course of the year. from last week.
With these increases, major players such as hedge funds suffered losses estimated at nearly $ 70 billion. And behind the rally was a group of amateur individual investors, who led a revolution against the big investors.
Investors have come together via the social media platform Reddit, a forum of 4 million people who typically discuss topics related to stocks and investment opportunities.
What is the history of Gamestop stock?
People who buy and sell stocks typically bet on companies that they believe will not perform well in the future because they borrow the company’s stock, which is expected to be priced down in the future, and sell the stocks. stocks they borrowed immediately. After the stocks fall, they buy the stocks again and give them back, making huge profits, and this process is called “short selling”.
Game Stop was one of the stocks that major investors bet on the decline, but a large number of individual investors bought the stock, which led to its rise, resulting in caused heavy losses to hedge funds on Wall Street.
Individual investors, by banding together, try to teach senior investors a lesson, and one individual said in a comment on the social media platform: “In 2008, many private sector investors committed suicide because of the loss. money that went to hedge funds, so now I have no regrets for these (senior) people. Investors) ”.
Leap of money:
The stock market saw a rise in the price of silver yesterday, with the price per ounce rising 7.3%, its highest level since February 2013, in light of buying demand from individual investors . However, silver fell today, Tuesday, as investors turned to profit.
Individual investors have also targeted certain European companies with larger debt positions in the market, such as Pearson, but with far fewer losses than in the United States.
Source: Agencies
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