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Are Gamers Gaming the Markets - GME

There was a group of traders eager to learn from each other communicating in an online forum, sharing tips, and offering insights. Read the blog to know more about GME at Shield. Read the PDF or visit us at https://bit.ly/3uThz8K

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Are Gamers Gaming the Markets - GME

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  1. SHIELD GME AREGAMERSGAMINGTHE MARKETS?

  2. Are Gamers Gaming the Markets Itseemedinnocentenough, atleast atfirst. Therewasagroupoftraders eagertolearnfromeachother communicatinginanonlineforum, sharingtips, andofferinginsights. Thesubredditthread, r/WallStreetBets, wasrapidlygaining popularityandcurrentlyboasts nearly8millionmembers. Fine, no causeforalarmthere. ThenSteveCohen, thebillionaireowneroftheNewYorkMets andleadinvestorbehindthehedgefund, Point72, shorted GameStoponJanuary16, 2021. Isn’t that illegal? Yesandno. Redditorsdefendtheiractionscitinghowhedge funds “dothisallthetime;” shortingstocks, buyingitenbloc, thentheinvestorscollecttheirprofits. Themassesonthe subredditthreadarearguingthattheshortsplacedon GameStopbyhedgefundswere “inflated” and “artificiallylarge.” Posingthequestionmorenarrowly, isitillegaltobankrupta hedgefund? No, it’snot; well, notexactly. However, whatithas doneisputsocialmediaintothecrosshairsofregulatory agencies. Moreonthatinamoment. Whenanalystsorhedgefunds “short” astock, itmeansthatthey anticipatethatthesharepriceswillsoondrop. Tradersborrow sharesfrombrokersandsellthembackintothemarketatthe pricelistedatthetimeofthetransaction. Oncethesharesdrop, tradersbuythemback, returnthestocksbacktothebrokers, andpocketthedifference. https://www.shieldfc.com/

  3. What about collusion? That’swherethingsgetmoreinteresting. Socialmediaandthe riseofinfluencerscoupledwithincreasedaccessibility (where low-doughinvestorscanchipinandbuystockstogethertogain entry – eventoexclusivemarkets) havemadeitpossiblefor communitiestorallyaroundaringleader. Individualscanchoose tobecomepartofthecollectiveorpursueinvestment independentlyoncetheygetthe “scoop” onwhichpaththe majorityareinclinedtotake. Andthat’sthegreyzonethathas everyonetalking. Individualsaremakingachoicewhetherornottofollowthe cuesfromaninfluenceronsocialmedia. It’squiteanotherthing tosiftthroughallthoseemojisandshort-handcrypticmessages tocorrectlyassessifindividualscolludedtodeliberately manipulatethemarketsaspartofamasterplan. Theother missingpieceisthatgeneraltrafficofthesocialmediachannels isnotmonitoredformarketfraud; onlythee-Commsof registeredbrokersandtradersaremonitored. Thiscouldchange. https://www.shieldfc.com/

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