The GameStop Stock Saga Explained

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Midas Letter

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Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

The David vs. Goliath story that has unfolded this week is very enduring on the surface. Small investors being able to rise up on social sites like Reddit, and specifically the subreddit r/wallstreetbets, gaming the stock market and outgunning billion-dollar hedge funds…

It’s the ultimate underdog story…

However, on the back of GameStop Corp. (NYSE:GME) rising thousands of percent, the White House, Congress, and U.S. securities regulators are now monitoring the situation. The SEC said the agency was working with regulators to “review the activities of regulated entities, financial intermediaries, and other market participants.”

Robinhood and TD Ameritrade stopped traders from purchasing any more stock as Wall Street’s central clearing hub demanded large sums of collateral due to the surge short activity.

Testing the theory of a “free market” and “freedom of trade”.

Are the regular retail investors only going to be hurt from this saga in the long-run as more regulations are adopted?

Watch the entire interview for a thorough breakdown of the GameStop and AMC situation and what it means for regular traders moving forward.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.