The recent plummeting shares of the videogame company, which Wall Street giants projected to fail, has recently been a hot topic of debate. Investors and several traders have flocked around the company’s shares after the proposed advertisement of the shares by wallstreetbets on social media platform Reddit, in a bid to enjoy the rapid success the stocks have affiliated itself with. The latest news going around now is that the U.S Congress is set to hold hearings on the video game retailers’ plummeting share prices, which hit $500 24 hours ago.
The U.S congress will now investigate why the users faced trading restrictions
The rapid rise of the GameStock shares has been the talk on social media. Investors are likening the meteoric rise to that of the leading and most valuable cryptocurrency, Bitcoin, which had seen its value rise astronomically in days. A popular Twitter user with the name Zigg had announced to his followers barely two days ago that his $53,000 investment in the company’s stocks had yielded him a whopping $11 million.
This news and other affiliated success stories have now forced Robinhood and a few stocks trading platforms to temporarily suspend the GameStock shares’ purchase in a bid to curtail the impending rush. However, the public is now awaiting the deliberations of the United States government, who, through the lawmakers, are now taking a look at the situation surrounding the trading restriction faced by investors due to some hedge funds unethical behavior, amidst plummeting rise of the stocks.
A democrat representative of the house panel, Maxine Waters, believes that there is a need to punish the hedge funds that have to change the market’s tune to a more volatile space due to selfish reasons. The lawmaker also suggests that congress also take a keen look at the stock market’s overall operations, looking like a one-way street.
The SEC might not be able to do much
The U.S government regulatory bodies in charge of have now announced that it will set a date to look into the issues which involve short selling, digital trading platform and a host of other issues. There is now a growing public interest to know the stance of financial regulators. Most of them are yet to discuss the trading suspension openly.
Another concern raised by the public who believe that the commenters on Reddit might have played a part in the manipulation of the plummeting shares of GameStop and other firms. However, a business reporter who had been following up keenly with the issue believes that financial regulators like SEC might have little or no impact in the ongoing trial as they cannot have eyes everywhere and monitor people’s activities on social media. However, the only good news about the situation is that Press Secretary of the Congress, Jen Psaki, briefed reporters that the SEC is currently investigating the incidents to prevent future occurrences.