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BusinessWhat is GameStop (GME)

What is GameStop (GME)

But what is GameStop?

GameStop is a video game chain stock company with the acronym GME listed on the New York Stock Exchange, which is a subsidiary of the Australian company ED Games.

The company’s shares are always in the category of the most sedentary and cheapest shares and in the category of shares such as Nokia and the cinemas of the chain company AMC

What happened to GameStop?

Some novice investors who used free apps like RobinHood to do business attacked buying stocks that covered a very small portion of Wall Street. Social media ads such as Reddit and Discord, upload analytical videos to prove the positives on Twitter, and Robin Hood app attention to these stocks caused this volume and growth.

This caused the shares of some companies to grow significantly. GameStop, meanwhile, grew the most dramatically by about 1,700 percent.

However, after this insane price increase, Robin Hood imposed restrictions on the purchase of Gamestop shares, which eventually met with protests from people in cyberspace; The wave of protests led to a statement from the SEC’s Securities and Exchange Commission calling for public support and a re-examination of the restrictions. Reached $ 325.

Gamestop shares

What was the reason for what happened to GameStop?

People who buy a company’s stock for a short-term profit and quickly realize that they made a wrong purchase, try to buy more shares from that company in order to cover the loss and make the desired profit, which increases the value of the stock. The company will be mentioned.

After the Redditors realized that the big Wall Street Mutual Funds were trying to drastically reduce GameStop stock prices, they teamed up and bought a large stake in the company; And rising demand for these stocks has increased its value.

What is the future of GameStop?

It seems that when Redditors feel that these stocks are no longer capable of making the profit they want, they may conclude that they are cashing in on their money; This will again reduce the price of these stocks. But data from Friday also show a 400 percent dividend for the company.

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