AOC, Ted Cruz, and even the Trump children unite today to question something outrageous happening in Wall Street.
If you are not aware of a stock called GameStop GME – then you are really a passive investor. GameStop, a video game retailer, where the Game has stopped for many years now since the advent of online streaming, is on the last leg of its life support. But over the last two weeks, a bunch of retail investors started buying this stock pushing prices up.
The stock price has skyrocketed largely due to a short-squeeze. The short ratio is 138% of the float. Meaning the shameless brokerages have allowed their friendly neighborhood hedge funds to borrow more than the total number of shares available in the account positions.
The stock went from 5 dollars to 50 to 200 to 400+. A similar short-squeeze is happening on other beaten-down stocks like $AMC and Blackberry.
For whatever reason, the brokerages did an outrageous thing today 1/28/2021 – they allowed only selling but not retail buying in these stocks. If there are no buyers but only sellers with the obvious result of prices crashing down…
#Schwab #Robinhood Are you protecting your chummy hedge funds who can get out of the short positions at lower prices? #stocktrading
Shame on you Wall Street for letting this happen – Is it time for Congress to investigate Robinhood and other brokers?
