Within the past 7 days, even actually back to this past year, there has always been talk about stock manipulation with wealthy notables such as congressional members dumping stocks by the masses before corona hit following a wave of CEO's resigning not so quietly before the market crashed that went on from late February to early April of 2020.
Online Reddit form called r/WallStreetBets circulating conversation about day trading, Q and A and just simples stories and daily chats about the market, starting with nearly 2 million to now with around 4.2 million users today for the every day man. This all starts the conversation about Game Stop, catalyzing the rising stock of nearly vintage game trade store.
Today platforms used by the average day trader Robinhood, are restricting buys which was said to quell the amount of day trading is affecting the market. People are calling out the hypocrisy of the situation where supposed ally for the average man App Robinhood is putting obstacles such as hiding searches for stocks GME, BB and AMC and canceling orders already in process. The very platform that was literally named after the fable about stealing from the rich and giving to the poor has chosen its side.
They are not the only ones, also Fidelity and Charles Schwabb have also restricted trading with those stocks. Famed notables rallying behind the everyday man are Sports media mogul, David Portnoy, even Billionaires, Mark Cuban, Elon Musk, and Chamath Palihapitiya going to bat on mainstream media platform NBC and FOX where people are calling the movement fraud and stock manipulation.
Throughout the year 2020, there has been a spotlight on the wealth inequity and the dwindling and this just shows the difference in privileges between wealthy brokers and business brokers. With the stock starting at 43.02 now today January 28, 2021 going as high as 449.72 for GME. There is reason for big finance to be worried, with online users having enough buying power, the control isn't in Wall Streets favor.
Short sellers have collectively lost nearly $5 Billion this past week and even massive Hedge Funds such as Melvin Capital essentially had to become bailed out due to their short selling and even sparked talks about bankruptcy. Conspiracies have been flying around on both sides, trying to frame the Reddit forum as Alt Right supremacists to even suggesting foreign online attack.
This past week is a continued saga with the everyday trader vs big Wall Street. This puts in to question the ins and outs of the market and showing the power of big men with big pockets. The fight is still happening, with huge backers now in the game and huge names, even though maybe 1% of the market is being talked about due to these day traders, this puts into question how much of the market is owned and controlled. It's a good day for conversation and even just understanding of the market minus all the finance jargon. Even though personal finance really isn't talked about as much, today we finally get some answers about Wall Street.
Individual investors are being stripped of their ability to trade on @RobinhoodApp
Meanwhile hedge funds and institutional investors can continue to trade as normal.
What do you call a market that removes retail investors ability to buy to save institutional investors shorts? https://t.co/G0hQFJDaG4
Comments
Post a Comment