It all started with Wall Street hedge funds betting that GameStop stock would go down. Now “owning stock” is just a fancy way of saying you own a small percentage of that company. The reason they were betting on that is because if the stock did indeed go down, they would make money. However, there are millions of retail investors, who are just regular people like you and me. Thanks to the popularity of Reddit stock trading forums, people started to share some of their wisdom and assumed the opposite of the hedge funders. Normal people started to assume that Gamestop stock would increase and started buying stock. So many people did this that the price of the stock went so high that at least one of the hedge funds betting against GameStop lost billions of dollars.
Where does Robinhood fit?
Enter the ghost of stock market reality, otherwise known as Robinhood. Now, Robinhood is an investment trading app that thousands of everyday, normal people use to buy and sell stock. Since the price of the GameStop stock continued to rise, they decided to stop allowing people to buy any kind of GameStop stock. Many other brokerage firms like TD Ameritrade and CharlesSchwab, which provide service to retail investors, also are not allowing the average Joe’s of the world to buy the stock. If you’re thinking illegal market manipulation, you would be correct.
What happens now?
The system is clearly rigged, and it is extremely unfair. They are proving in broad daylight that this was never a game we regular people were supposed to learn. This was supposed to be a secret game that the wolves of Wall Street played amongst themselves while the rest of the little guys sat idly by. The only plus side of this entire situation is that we are finally reuniting as a country. People like AOC, Ted Cruz, Ro Kanna, Rashida Tlaib, Marsha Blackburn, Ben Shapiro, Mark Cuban, Tyler Winklevoss, Charles Payne, Ja Rule, Elon Musk, Chamath Palihapitiya, Dave Portnoy and Donald Trump Jr. are all on the same side of this issue. If they really want to make it the big guys versus the little guys, then let’s show them. We need to come together and fight against this blatant manipulation.
For more on this story, check out this article.