A group of Redditors are taking on Wall Street by investing in seemingly failing companies in order to stick it to short sellers. Short selling is when an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender. Short sellers are betting that these stocks will drop in price and they stand to make a lot of money if/when they do. In the past couple of weeks, people using the subreddit “wallstreetbets” have been encouraging people to buy Gamestop stock, along with AMC and a few other failing retail companies, in order to send rich investors into a tailspin. The Wall Street game of speculation and risky bets is being used against them and their losses could accrue into the billions of dollars.
Congresswoman Alexandria Ocasio Cortez took to Twitter to comment on the investing craze, saying: "So, market manipulation by federal reserve pumping $ into failing banks & corporations is okay. But Reddit users rallying GameStop is wrong and must be regulated? The entire stock market is disconnected from reality. Funny how quickly the financial press cries for hedge funds.” The current “meme stock” craze could be anything from a giant bubble to part of a large uprising in the world of finance. Where it goes from here, no one can say for certain.
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