GameStop is an American video game, consumer electronics and gaming merchandise retailer. The company is headquartered in Grapevine, Texas, United States, a suburb of Fort Worth, and operates 5,509 retail stores throughout the United States, Canada, Australia, New Zealand, and Europe as of February 1, 2020. In Canada I think we'd be more familiar with EB Games and you can trace their roots back to Babbage's which was a Dallas, Texas-based software retailer founded in 1984.
Now, if you are not a gaming type person and you don't know anybody who is, you probably wouldn't understand what's happening with GameStop as I was clueless for those exact reasons!
So here is what I understand to be true. Yes... you can make comments on this post if I'm completely wrong.. lol
So people get together and "call" others to invest in a stock, in this case "GameStop" to drive the stock higher. Then there are professional Day Traders or Short Sellers. They start investing in a stock where they see this phenomenon and sell before it starts going down. The investors that are trying their hardest to NOT let the short sellers make billions are sticking together to keep a strong force. They believe it's good over evil or common man vs corporate and Wall St and they want the government to stay out of it. Press Secretary Jen Psaki mentioned that Treasury Secretary Janet Yellin is closely monitoring the situation. This week’s developments prompted TD Ameritrade to restrict trading for GameStop which has spooked parts of Wall Street and they worry that the SEC (Securities and Exchanges Commission) will take future action to stop or curtail this kind of trading.
The problem with all of this is that the ones that get hurt the most are the "women and children", meaning that people who are NOT professionals buy too late and are the ones who lose everything because they are unaware of how the system works. I found a very VERY good video to explain this.
A video of one of the GameStop Investors from the Reddit Groups. He makes a lot of sense and he may just be right about Good against Evil and David and Goliath. BTW: Diamond Hands Diamond Hands refers to traders who believe in the eventual profitability of their stocks and securities and keep holding them while their value drops below the initial
Credit: CNN Business