What You Need to Know About Short Selling and the Stock Market
We examine the potential market implications of events like the GameStop stock saga.
Short squeezes like what we saw this year with GameStop aren't new. But the evolution of the communication between investors and the trading platforms used to mobilize around the stock are--at least to the investing world.
Since the early days of the Internet, message boards have long been used by individuals to tout their investment positions. However, the exponential growth in social media coupled with the advent of easy-to-use, no-commission trading platforms enabled a crescendo that sent GameStop’s stock price soaring twenty-four-fold, before it came crashing back down.
David Sekera does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.