Recently, small investors organized online to buy large amounts of GameStop stock and caused billions in losses to Wall Street hedge funds looking to short that stock and benefit from its declining price.
GameStop had been sinking for years. But in January of this year, prices soared to over $300 a share.
On January 28, the online stock trading platform, Robinhood, suspended all GameStop buying activities, crashing the price. Investors accused Robinhood of manipulating the market in favor of hedge funds, and a class-action lawsuit was filed.
But this is just the surface. To understand what’s really going on, we sit down with Epoch Times contributor Jeff Carlson. He’s worked for 20 years as an analyst and portfolio manager in the high yield bond market.
At the center of the Gamestop controversy is one key question: who gets to decide the value of a company?
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