If you’ve been active on the Internet lately, you might have noticed that something is happening in the stock market. Along with the shares, memes are booming, and we’re constantly reminded that we’re poor. More than ever, people are hating on Wall Street, and they’re gaining more confidence than ever.
Basically, GameStop is an American game retailer where you can find game-related devices. Due to problems that the firm was facing, it had to get on the market. But why?
Some small facts about the stock market
First of all, let’s talk a little about the stock market. Briefly, it’s the place where traders are selling and buying shares. These shares represent a little piece of the company, so it has value. Therefore, people can invest in those companies to increase their value. Most of the time, companies issue shares because they want to raise some money. Now that we got that in the way, we can talk about investing.
One of the most important rules of investing is “Buy low, sell high”. This was the case because GameStop seemed to be in a bump, so it would lose money, and that was a problem for the company. The problem with this rule is that not always buying low is also valuable. Because normally when the value of the company is going down, its value becomes questionable. But people thought it was really underrated, so that was a good sign to invest.
Then the Reddit people came in. And bought many shares. The people who got into trouble were the short-sellers. These people are the ones that are betting if stocks are falling or not. As usual, the value of stocks is given by the people that are interested in them. And because many of them were betting against GameStop, when the stock had a booming development, they needed to buy shares to cover their own mistakes.
But how does this affect Wall Street?
The war is against ordinary people and rich people, as always. But this movement was like a revelation to us, that we can do anything if we just know how and when to do it. While investing and buying shares, you need to be quick and have enough courage. Just as a small detail, on 12 January, the share price from GameStop got from $20 to $325.
There was a small battle won. There was the most united thing people did, and it’s asking the whole world. Until the trading was suspended, and that was the moment people got mad. It’s unacceptable to stop the right of the people to invest. Finally, after some time, we’ll get to see what’s really going to happen with the market.
Until then…prepare yourself to invest. Times are changing!