Some stocks are rising due to meme stocks. Here’s why.
Sarah Tew / CNET
GameStop stock is still riding the wave of the Reddit community, WallStreetBets, and, after the market closed on Saturday, is currently at $ 325 per share. Reddit users are fighting Wall Street to keep GameStop’s stock prices up while Wall Street expected a crash. Small investors are using Reddit communities to boost “meme stocks”, causing short sales. And it’s not just GameStop. Other companies, such as AMC and Nokia, were also affected by the coordinated increase.
No, this does not mean that you must necessarily drop everything and invest entirely in the shares of the moment. Some are calling the market manipulation, a “Ponzi scheme”, and the stock price is likely to balance out once the noise is over.
In fact, the TD Ameritrade broker restricted trading of GameStop and AMC shares on Wednesday and continues to post an advisory note to customers on market volatility. Robinhood commercial application followed suit on Thursday in response to uncontrolled growth – the company got in trouble by restricting stock trading and will be closely analyzed by the SEC (they now limiting purchases on AMC and GameStop actions). The White House said it is monitoring the situation.
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What GameStop’s growing stock has to do with …
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Part of what is so unusual about GameStop’s peak stock is the vocabulary that has been used to drive the trading action. Elon Musk, founder of Tesla and SpaceX, helped fuel the activity with a one-word tweet on Tuesday: “Gamestonk. ”
What is a stonk and what does it have to do with trading? Here is a sample of the jargon behind the huge highs and what the terms mean:
- Stonks: Intentional misspelling of actions. Sometimes it presents the Meme Man when used in a meme (see below).
- Diamond hands: When a trader is prepared to hold his stocks or bonds for a long time.
- Rockets: When someone wants the stock price to skyrocket.
- Hold the line: Hold a stock, even if its value falls.
- “We like the stock”: A meme used for an action currently on the rise.
Stonks is often associated with the Meme Man, in the image.
Know your meme
If you decide to dive into the stock market – and we’re not advising you in any direction – here are some important tips on how to invest, and some robo-consultants who can help you. In addition, here is more information about how Reddit and Elon Musk triggered the rise of GameStop. Here it is everything you need to know about stock splits and five investment accounts that everyone should have. Also, check out the funniest GameStop Reddit jokes and memes.