Sandra Smith Explains GameStop’s Stock Surge And Wall Street Frenzy

Listen To The Full Interview Below:

On today’s Guy Benson Show, Sandra Smith, co-anchor of America Reports with John Roberts & Sandra Smith spoke about the wild frenzy on wall street over online amateur investors surging the price of several stocks.

Sandra Smith said,

“There’s been a speculative frenzy and some of these very well known companies, GameStop is one of them. But now this brokerage firm is going on to halt trading and names that you all know like Bed, Bath and Beyond, Nokia, Express, American Airlines, because these individual investors and there’s a lot of different names. People say amateur investor mom and pop investors. It’s not necessarily an investor, it’s everyday traders. You probably have a buddy or a friend or a brother or sister, who day trades. They’re not a sophisticated investor like a professional trader. They’re more like a day trader. And what happened was a lot of these small retail brokerage firms over the years and Robinhood is one of them has put out with a goal of what they say, democratizing, investing. They basically made it free for, you know, the everyday trader to trade with no commission. It’s basically free to trade with some of these brokerage firms. Well, there is an army of investors that decided to go after GameStop after it was almost valued at zero. And some of these big sophisticated traders, big hedge funds had basically sold short that company’s stock to almost zero. Guy, you know what it means to sell a stock short? You’re betting that it’s going to go down and they put so much money behind that trade that it was almost valued at nothing? Well, this army of individual investors got together on Reddit and said, we’re going to run the price of this thing up. And they did. And that’s what caused all this chaos on Wall Street.”