Just lately, it appears that evidently a bunch of Redditors on the subreddit WallStreetBets have been actively shopping for GameStop’s shares. The efforts by the Redditors have managed to drive the share prices up to $4 to a stagger $200, which resulted in some hedge fund managers, who had shorted GameStop’s shares, dropping a ton of cash within the course of.
Sadly (or thankfully) for buyers, it appears that evidently these actions have since managed to attract the eye of Congress who and the Senate Committee on Banking, who have announced that they are going to be holding a listening to “on the present state of the inventory market”.
In accordance with Sen. Sherrod Brown, who’s the incoming committee chairman, “American employees have identified for years the Wall Road system is damaged – they’ve been paying the worth. It’s time for the SEC and Congress to make the economic system work for everybody not simply Wall Road.”
Home, Rep. Maxine Waters, who chairs the Home Monetary Companies Committee additionally made a statement which reads, “As a primary step in reining in these abusive practices, I’ll convene a listening to to look at the current exercise round GameStop (GME) inventory and different impacted shares with a concentrate on quick promoting, on-line buying and selling platforms, gamification and their systemic impression on our capital markets and retail buyers.”
GameStop’s shares have managed to garner a variety of consideration, the place some really feel that the actions of the Redditors had been akin to Wall Road buyers who made related “gambles” previously, and shouldn’t necessarily be viewed any differently. There are additionally others, particularly hedge fund managers, who are crying foul after dropping a ton of cash.
Filed in . Learn extra about Gamestop, Legal and Reddit. Supply: techcrunch
