Gamestop – SEC relieves short sellers – economy

Game stop:SEC relieves short sellers

In the eagerly awaited report on the volatility of the shares of the video game retailer Gamestop, the US Securities and Exchange Commission exonerated short sellers. The short sales were not the main reason for the rise in so-called Meme shares, writes the SEC. The cause was rather a positive mood for the company. Short sellers borrow stocks and bet that they will be able to stock up on the papers cheaper by the return date. They reap the difference as a profit. This practice is called “short selling” in stock market jargon. At the beginning of the year, according to stockbrokers, small investors had agreed to concerted purchases of Gamestop shares on the online platform Reddit in order to force hedge funds to cancel their bets on a price decline.

© SZ from October 20, 2021 / Reuters

.
source site