Gamestop, a video game distributor. The stock price recently soared from $20 to $350, then plunged to $190 on the 28th. AP=Yonhap News
On the 28th (local time) in the New York Stock Market, the stock price of GameStop plunged 44%. On this day, Robin Hood, a free stock app, announced in a statement that “For some stocks, investors can only sell and cannot buy new ones.” Stocks blocked by some free stock apps are Gamestop, AMC, and Blackberry, which have recently skyrocketed due to aggressive purchases by individual investors.
In response to such a move, not only the Democrats but also the Republican Party’s influential lawmakers are criticizing Wall Street’s large hedge fund and the company that blocked private investors from selling short. Hedge funds and institutional investors are able to buy and sell, which means that both sides are competing equally.
Senator Elizabeth Warren (Democratic) said, “Hedge funds, private equity funds, and wealthy investors have been playing with the stock market like private casinos and letting others pay for it,” said the Securities and Exchange Commission (SEC) and other financial regulators. “It’s time to work at work.
Congressman Lo Cana (Democratic) said, “These measures are beneficial only to Wall Street billionaire traders and against the average person,” he stressed, “the market needs more regulation and equality.”
Congressman Alexandria Okaciocortes (democratic) said on Twitter that it was “unacceptable,” and “we need to learn more about the decision of the Robin Hood app to only prevent individual investors from buying stocks.” Mentioned.
Republican Senator Ted Cruz shared a tweet from Ocortes, emphasizing that he “fully agrees”.
In recent years, individual US investors have revolted from the hedge fund’s target of short selling by GameStop, and intensively bought stocks through online community Reddit, soaring the stock price by more than 17 times. Accordingly, the hedge fund announced that it gave up the short sale of GameStop shares.
Reporter Lee Hae-jun [email protected]