Question
1- Read this article on GameStop: https://www.investors.com/etfs-and-funds/sectors/gamestop-stock-gme-how-much-10000-invested-in-gamestop-stock-worth-now/?src=A00220 What is your opinion on what happened with GameStop's stock? Do the financial and economic variables equate to
1- Read this article on GameStop:
https://www.investors.com/etfs-and-funds/sectors/gamestop-stock-gme-how-much-10000-invested-in-gamestop-stock-worth-now/?src=A00220
What is your opinion on what happened with GameStop's stock? Do the financial and economic variables equate to the jump in GameStop's stock price? What advice would you give your classmates about investing in this type of stock?
2- Read the following article:
https://finance.yahoo.com/news/beyond-imagination-poland-homeowners-lining-120000534.html
What is happening in Polands economy? What could some potential solutions to this issue be? Use key words and concepts learned throughout the course to support your response.
3- DO YOU AGREE WITH THIS SCENARIO?
Poland is experiencing a scarcity for coal due to cutting ties with imports from Russia (Pan, 2022). People are lining up and waiting in their vehicles for days to be able to buy coal for their family. 3.8 million households in Poland rely on coal to heat their homes, and 80% of Poland's electricity is generated from coal (Marek Strzelecki, 2022).
This hurts Poland's economy because Russian coal was cheaper for them. They now need to source more expensive coal from other countries. The government is offering a 23 billion zlotys relief package to households and is encouraging people to source alternatives such as wood (Harper, 2022). Piotr Siergiej thinks that this relief package is going to make things worse by increasing the price of coal even higher. This will increase household incomes, but the supply of coal will remain limited, contributing to the inflation of coal prices (Harper, 2022).
4- DO YOU AGREE WITH THIS SCENARIO?
The company's share price skyrocketed from a few dollars in 2020 to a high of more than $350 on January 27th, changing it from a $24 billion middleweight to one with a value of less than $200 million in April 2020. This quick ascent has been covered on every front page, studied on financial television, and even talked about in government buildings.
The shocking power grab lends some credence to fewer wealthy investors, many of whom are encouraging one another on Reddit and are trading stocks for the first time as a result of brokerages providing free trading apps. As AMC Entertainment, Bed Bath & Beyond, and other undervalued firms also experience unexpected price increases, more Wall Street investors are now wondering whether the stock market is in a risky bubble that is likely to burst. Although it dipped on Wednesday, the S&P 500 hit a record high earlier this week.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started