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.