Amateur traders on the social networking site Reddit have taken the stock market by storm with a series of surprising investments.
Wall Street investors have seen GameStop struggle and have been selling the company short on the stock market for their own personal gain. Members of the popular subreddit r/WallStreetBets saw this and devised a plan to buy GameStop’s stock for a cheap price.
Other companies used in this scheme include AMC and Blackberry.
This drove up the value and ruined investors’ plans for a short sell. The success of this scheme brought national attention to the subreddit, as investors panic, stock trading apps like Robinhood falter, and politicians debate the long-term effects of the stock market mayhem.
Rep. Alexandria Ocasio-Cortez and Sen. Ted Cruz, two politicians on opposite sides of the aisle, actually agreed that efforts to undermine the Redditors' efforts were unethical.
Professor of Real Estate V. Carlos Slawson hopes this viral event will bring more undecided students to the LSU Financial Department.
"Any students here at LSU who are undecided in their major," Slawson says, "we would love for them to come over here if they're excited about this kind of topic. We can talk about the efficient market hypothesis, we can talk about the Greater Fool Theory, lots of techniques that we have over here in Finance."
Not even the most seasoned economists can predict what will happen next, but Reddit’s “WallStreetBets” is available for anyone to participate in.