“It created a huge, deep-seated hatred and feeling of being robbed of what could have been life-changing money for many people,” Mr. Big guys on Wall Street had decided to cut little guys off in the middle of something, he felt. But the abrupt shutdown in trading upset Mr. Harrison Fritz, a 25-year-old who works in the finance industry, had invested $8,000 - most of his savings - into GameStop shares last January, lured in by the possibility of profit. The company’s outlook is uncertain, but the stock’s fate is clearer: The public - as opposed to institutional investors or insiders like Adam Aron, the chief executive - controls the majority of AMC’s shares. They have since recovered to trade around $100, although the company mostly posts quarterly losses.ĪMC, the other big meme stock that many traders believe Wall Street is also manipulating, is trading around $15, only slightly higher than it was a year ago, despite briefly popping to $60 in June. GameStop’s shares crashed from nearly $500 to $40 in three weeks, causing big losses for investors. When GameStop shares soared last January, Robinhood, the commission-free trading app popular with small investors, temporarily restricted trading in meme stocks, citing Wall Street regulations and liquidity issues.
College Savings : As the stock and bond markets wobble, 529 plans are taking a tumble.Navigating Uncertainty: What should investors do about the stock market’s repeated head-spinning changes in direction? Nothing, our columnist says.Our Coverage of the Investment World The decline of the stock and bond markets this year has been painful, and it remains difficult to predict what is in store for the future. A theory has taken hold that Wall Street firms, in cahoots with regulators, have created “synthetic” or fake shares of GameStop as part of an elaborate profiteering strategy - and that they must be stopped. On social media forums, they present alternative ideas about trading and vent about how the wider system is rigged against them. They appear to largely be men in their 20s and 30s. The new traders often refer to themselves as “apes” in homage to “Rise of the Planet of the Apes,” a 2011 film in which apes challenge human domination. Together, they turned investing into a mass movement that was personal, with a decidedly anti-expert, anti-Wall Street bent. Many were guided by an online community of die-hard traders determined to make money in a world they saw as being manipulated by big Wall Street firms. Stuck at home, flush with government stimulus checks, known as “stimmies,” and watching the stock market rise to nosebleed levels even as the economy teetered, millions of small investors began to take tentative steps into trading in the spring of 2020. GameStop was the coming-out party of sorts for a sweeping change in stock market investing that had been bubbling since the start of the pandemic. “The battle of good versus evil is not just limited to the walls of a church or a synagogue or a mosque,” he said. He cast the so-called meme stock fight in moral terms. Bowen, who received his master’s degree in divinity at the Princeton Theological Seminary. “The reason I am still in this, and the reason I am willing to ride these stocks to zero, is for my fellow citizens,” said Mr.
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