GameStop Wars
U.S. SEC Scolds Investors As GameStop Jumps, Short-Selling War Resumes January 29, 2021 By Sagarika Jaisinghani and Medha Singh (Reuters) – The U.S. Securities and Exchange Commission waded into the battle between small investors and Wall Street hedge funds, warning brokerages and the pack of social-media traders that it was watching for potential wrongdoing. GameStop shares jumped, awarding retail investors the advantage in the latest round of their week-long slugfest against major financial institutions that had shorted the video game retailer. The so-called “Reddit rally” has inflated stock prices for GameStop and other previously beaten-down companies that individual investors championed on social media forums. GameStop surged 83% on Friday after brokers including Robinhood eased some restrictions on trading. On Thursday, GameStop shares slid following the trading halts from Robinhood and other trading apps, which drew outrage from politicians and calls for action from regulators