All posts tagged: stock market

Little people 1 – Hedge funds 0

You may have heard of the recent blood bath on Wall Street when major hedge funds lost billions of dollars this past Wednesday (Jan 27, 2021), when the little people rose up using the same tricks the hedge funds often play and started buying stocks in a little known business called Gamestop in order to drive up the price. Apparently, the big time hedge fund investors on Wall Street had bet the company’s stocks would go down. It is called shorting a stock. However, when thousands of people from Reddit started buying Gamestop, its stock prices skyrocketed instead and the hedge funds lost billions at the game they usually play at our expense. The Daily Caller explains: Short-sellers of GameStop, investors who bet that the price of the stock would go down, had reportedly lost more than $5 billion dollars through Wednesday. Retail investors in the WSB community executed a “short squeeze” on the stock in recent days, meaning they purchased shares to drive the price up and cause the hedge funds that shorted the …