What happened during the Game Stop stock craze in 2020?
In: Economics
For an actual 5 year old: a few rich people sold something they didn’t have, and almost had to buy it back, at fair market price, but instead were able to have their bad bet cancelled / erased / delayed depending on the route taken.
The “craze” isn’t over and is about to get crazier as the company has a billion dollars worth of cash and is on target for a year of positive earnings.
Should be good.
And a quarter of the shares issued have been “locked” by a group of investors determined to expose the Ponzi scheme that pervades the system. Those investors have chosen to register their shares with a transfer agent instead of letting them be lent out thousands-of-times-over by brokers.
And everything on Earth going on is related to this on-going idiosyncratic risk. From war to hyperinflation, the wealthy are angry as heck!
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