Recent Lessons

Show all results for ""

Feature Overview

Ace your exams with our all-in-one platform for creating and sharing quizzes and tests.

Quizzes

Create quizzes and tests automatically from your content using AI.

Flashcards

Automatically turn your notes into digital flashcards.

Share, Export & Embed

Share with classmates or export to Excel and your learning management system.

Stats & Reporting

Auto-grading quizzes and tests with detailed stats and reports.

Mobile Apps

The smarter way to study – wherever you are.

Pricing Schools Business

Features Pricing Schools Business

A&S - B2.1 - GAMESTOP SHARE TRADING EXPLAINED

10 Questions

0 Views

A&S - B2.1 - GAMESTOP SHARE TRADING EXPLAINED

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What caused the price of GameStop shares to go up?

Hedge funds buying more shares than exist

Reddit users buying the stock

Hedge funds betting against the company (correct)

Robinhood intervening

What happened when the price of GameStop shares went up?

Hedge funds made a profit

Hedge funds had to buy back their shares at a higher price (correct)

Reddit users made a profit

Robinhood made a profit

What is Robinhood being investigated by the SEC for?

Trading stocks that its users are not allowed to trade openly (correct)

Shorting more shares than actually exist

Making a profit from GameStop shares

Intervening when people wanted to buy GameStop shares

Who made money from the GameStop situation?

Reddit users (B) Signup and view all the answers

What is Robinhood?

A stock trading app (A) Signup and view all the answers

What happened when Robinhood intervened?

People were stopped from buying GameStop shares (B) Signup and view all the answers

What could happen again in the future?

A situation similar to the GameStop situation (D) Signup and view all the answers

What caused the hedge funds to lose billions?

Being forced to buy back their shares at a higher price (B) Signup and view all the answers

What is the app not able to do?

Control the collective group of people (B) Signup and view all the answers

What did some people believe is a turning point for stocks and shares?

The GameStop situation (D) Signup and view all the answers

Study Notes

GameStop shares went through the roof because hedge funds were betting against the company, shorting more shares than actually exist.
This caused the price of GameStop shares to go down, making a profit for those who shorted the stock.
However, if the price of GameStop shares goes up after they've sold them, the hedge funds are still on the hook for those shares.
This has led to the hedge funds being forced to buy their shares back at a higher price, losing billions.
Some users on Reddit made a fair bit of money for themselves by noticing what was happening and turning their attention to other brands.
Robinhood, an app that allows for buying and selling of stocks, intervened and stopped people from buying GameStop shares, angering some of the investors.
Robinhood, a stock trading app, is being investigated by the SEC for allegedly trading stocks that its users are not allowed to trade openly.
Many people believe this is a turning point for stocks and shares, and that it could happen again.
The app is just a collective group of people sending a message to buy specific stocks, and they cannot really control this.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

What is happening with GameStop? The company is experiencing a problem with hedge funds betting against it, causing the price of GameStop shares to go down and making a profit for those who shorted the stock. However, if the price of GameStop shares goes up after they've been sold, the hedge funds are still on the hook for those shares. This has lead to the hedge funds being forced to buy their shares back at a higher price, losing billions. Some users on Reddit made a fair bit of money for themselves by noticing what was happening and turning their attention