The stock market frenzy surrounding videogame store, GameStop seemed to come out of nowhere. Last week, armchair investors, armed with easy-to-use trading apps, used social media to drive up the share prices that multiple billion-dollar hedge funds had bet against. GameStop share prices rose over 1000%, and with that, hedge funds like Melvin Capital and Citron Research lost an estimated total of $19 billion.
But what actually happened to cause such a massive hit to Wall Street? And why does this matter?
Sky News Daily podcast host, Dermot Murnaghan speaks to economist and former trader, Gary Stevenson about why this stock market volatility could be a symptom of an unequal society and Peter Tuchman, the most photographed New York Stock Exchange trader, speaks from Wall Street to explain why trading like this to make a political statement can be a dangerous game to play.
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