Introduction:

During the previous week on the economic side of the Stock Market, one very notable occurrence was happening with stock exchanges. The notable occurrence was the surging Gamestop Stock, which was exploding in exponential growth. So, what exactly caused the issue of the stock skyrocketing, and what were the consequences of this surprising rise?

Redditors: 

The way this started was a movement on the social media website or page forum known as Reddit. Reddit has several different tags that people can be a part of which includes different page forums. The page forums allow for pages like r/politics, r/youtube, and other forums. One of these pages is known as r/wallstreetbets, which is full of a group of people who like to sell or buy stocks based on betting on what happens, and is a large discussion forum that has a seemingly large influence on the website. 

On Wall Street Bets, one redditor stated invested a large amount of stock into GameStop, a known video game store that has been fading away for decades. Due to this fact, it started the trend that many people were buying GameStop stocks, which caused the stock to surge. This in turn caused investors’ heads to spiral due to the large amount of hedge funds and other short sellers on Wall Street that would be competing or wanting the Gamestop Stock to continue to go down. 

Hedge Fund Chaos:

Due to the rapidly rising stock, a lot of these wall street hedge funds and financial executives who played the stock market for a large amount of time were calling for new forms of regulation. They also were worried about losing a large amount of money from the rising stock that the large investors betted against. This in turn caused the panic of large stock market industries like the Dow or Nasdaq while smaller stocks like Gamestop and Blackberry were growing. 

This caused a large amount of backlash from the rich and mostly elite in society, that led to the shutdown of the Robinhood app and attempts to stop the amount of money being spread from these organizations in exchange for stock. This in turn caused a large amount of chaos against the app due to the belief that Robinhood was manipulating the stock market, which was a bipartisan view shared by Alexandria Ocasio-Cortez and even Ted Cruz. 

Over time, the popularity of the stock rising did eventually end and most of the market returned to normal, but many redditors did harshly show the upper classes of the capabilities of investing in large amounts of stocks especially on the riskiness of short stocking. 

Conclusion:

Therefore, the stock market does fluctuate even during very terminal times with the spread of the coronavirus and the continued manipulation of the market from the upper elites in society that control large banks and corporations. It is shown that when people organize that it can impact a large amount of income on even the wealthiest individuals.