Retail investors fought short sellers of hedge funds all week for GameStop shares, and a Florida man expressed his support for the boy, displaying a “BUY GAMESTOCK STOCK” banner above Miami.
The banner also had “WSB” at the end, which means the popular WallStreetBets Reddit forum, where day traders often discuss short squeeze.
The popular meme, “Litquidity”, posted a video of the banner. Forex Analytix founder Blake Morrow also posted a photo of the banner.
YELLEN RECEIVED $ 800G FROM THE HEDGE FUND IN THE GAMESTOP CONTROVERSY, WHICH DOESN’T UNDERTAKE TO REFUSE
GameStop’s shares have risen more than 1,700% in the year to date, as day traders poured money into the brick and mortar business, expelling short sellers from hedge funds along the way.
Robinhood, a trading platform that many retail investors use, temporarily stopped buying GameStop shares and other securities targeted by the WallStreetBets crowd on Thursday, annoying day traders who wanted to enter the rally.
The platform allowed users to buy GameStop shares on a limited basis on Friday.
Short sellers lost $ 70 billion by betting against American companies this year, including $ 19 billion in GameStop shares alone, according to financial data service Ortex.
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Robinhood’s restrictions on buying GameStop shares led to protests outside the company’s headquarters on Thursday, as well as protests at the headquarters of the Securities and Exchange Commission and the New York Stock Exchange.
Photos taken by a New York Times reporter show people holding signs outside Robinhood’s California headquarters that say “GME FREE” and “ROBINHOOD LIE”.
Co-founder of Robinhood Vladimir Tenev said Thursday that the platform was forced to stop trading GameStop and other securities due to “financial requirements, including SEC net capital obligations and clearinghouse deposits”.
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The SEC, for its part, said on Friday that it will “closely review actions taken by regulated entities that could harm investors or unduly inhibit their ability to trade certain securities.”
“We will act to protect retail investors when the facts demonstrate abusive or manipulative commercial activity prohibited by federal securities laws,” the SEC said in a statement. “Market participants must be careful to avoid such activity. Likewise, issuers must ensure compliance with federal securities laws for any offer or sale of their own securities.”
James Leggate and Lucas Manfredi of FOX Business contributed to this report.