gamestop

GameStop, the video game retail chain, saw its stock rise as much as 1,800% in January 2021 after fans, who believe the stock was unfairly devalued by large investors, championed the stock’s purchase. Because WallStreetBets, an online group on the social news platform Reddit, generated intense interest in the stock, some financial experts have speculated as to whether the group engaged in market manipulation – that is, engaging in deceptive speech or stock purchasing tactics to artificially inflate the price of a stock. Experts also wonder whether the commission-free investment app Robinhood engaged in improper behavior when it restricted buyers’ ability to purchase GameStop shares, resulting in their subsequent decline. As a law professor who teaches classes on the First Amendment, I f...

GameStop stock resumed its dramatic ascent after a popular no-fee online broker said it would lift restrictions on trading its shares. In recent days, frenzied activity in the video game retailer’s stock led the New York Stock Exchange to briefly halt trading multiple times, while Robinhood and other brokers restricted purchases of GameStop. That prompted outrage among some lawmakers and investors, leading to calls for investigations in Washington. Jena Martin, a law professor who studies securities regulation, explains what’s going on, why trading is sometimes restricted and how to tell if it’s a sign of any funny business. 1. What prompts trading in a stock to be halted? Typically, there are two reasons that an exchange might stop trading in a stock. The first occurs when an exchange – o...

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The Anonymity Of Redditors Who Discussed GameStop Stock Will Likely Be Protected By The First Amendment

Questions Answered – Why GameStop Shares Stopped Trading