(1) why would investors short sell GameStop in the first place? (hin look up the 1 year stock price levels and recent financial news on GameStop.)

(2) how did the short sellers lose so much money? Using the stock price data provided and assuming that a short seller opened her position on Monday, March 15th with 100,000 shares of GameStop and a 60% initial margin, what does the brokerage account look like for this short seller by end of day, Friday March 20th? (Hint: Use the class slides to organize your account chart and a financial markets website like Yahoo! Finance for closing stock prices.)

(3) On Friday, January 29th, Robinhood stopped investors from buying GameStop shares after the big price swings that week. They got significant criticism as well as kudos on their action. Why did Robinhood take this action? How would cash margin accounts play a role in this decision?

15:274 GameStop Stock Prices as of 3-12-... GameStop Stock Price Scenario: Purchase I share of GameStop on Jan 11 at closing price. Closing % Cumulative % Cumulative Change Price Change Change Change 11-Jan 19.94 12-Jan 19.95 0.01 0.05% 0.01 0.05% 13-Jan 31.40 11.45 57.39% 57.47% 14-Jan 39.91 8.51 27.1096 19.97 100.15% 15-Jan 35.50 (4.41) -11.05% 15.56 78.03% 19-Jan 39.36 3.86 10.8796 19.42 97.39% 20-Jan 39.12 (0.24) -0.61% 19.18 96.1996 21-Jan 43.03 3.91 9.99% 23.09 115.80 22-Jan 65.01 21.98 31.08% 45.07 226,03% 25-Jan 76.79 11.78 18.12% 56.85 285,11% 26-Jan 147.98 71.19 92.71% 128.04 642.13% 27-Jan 347.51 199.53 134.84% 327.57 1642.78% 28-Jan 193.60 (153.91) -44.29% 173.66 870.91% 29-Jan 325.00 131.40 67.87% 305.06 1529.89% 1-Feb 225.00 (100.00) -30.7796 205.06 1028.39% 2-Feb 90.00 (135.00) -60.00% 70.06 351.35% 3-Feb 92.41 2.41 2.68% 72.47 363.44% 4-Feb 53.50 (38.91) -42.11% 33.56 168.30% 5-Feb 63.77 10.27 19,20% 43.83 219.81% 8-Feb 60,00 (3.77) -5.91% 40.06 200.90% 9.Feb 50.31 (9.69) -16.15% 30.37 152.31% 10-Feb 51.20 0.89 1.77% 31.26 156.77% 11-Feb 51.10 (0.10) -0.20% 31.16 156.27% 12-Feb 52.40 1.30 2.54% 32.46 162.79% 16-Feb 49.51 (2.89) -5.52% 29.57 148.29% 17-Feb 45.94 (3.57) -7.21% 26.00 130.39% 18-Feb 40.69 (5.25) 20.75 104.0696 19.Feb 40.59 (0.10) -0.25% 20.65 103.56% 22-Feb 46.00 5.41 13.33% 26.06 130.69% 23-Feb 44.97 (1.03) -2.24% 25.03 125.53% 24-Feb 91.71 46.74 103.94% 71.77 359.93% 25-Feb 108.73 17.02 18.56% 88.79 445.29% 26-Feb 101.74 (6.99) 81.80 410.23% 1. Mar 120.40 18.66 18.34% 100.46 503.81% 2-Mar 118.18 (2.22) -1.84% 98 24 492.68% 3. Mar 124.18 6.00 5.0894 10424 522.77% 4. Mar 132.35 8.17 6.58% 112.41 563.74% 5. Mar 137.74 5.39 4.0796 117.80 590.77% 8. Mar 194.50 56.76 41.21% 174.56 875.43% 9.Mar 246.90 52.40 26.94% 226.96 1138 21% 10-Mar 265.00 18.10 7.33% 245.06 1228.99% 11-Mar 260.00 (5.00) -1.89% 240.06 1203.91% 12-Mar 264.50 4.30 1.73% 244.56 1226.48% 15:274 GameStop Stock Prices as of 3-12-... GameStop Stock Price Scenario: Purchase I share of GameStop on Jan 11 at closing price. Closing % Cumulative % Cumulative Change Price Change Change Change 11-Jan 19.94 12-Jan 19.95 0.01 0.05% 0.01 0.05% 13-Jan 31.40 11.45 57.39% 57.47% 14-Jan 39.91 8.51 27.1096 19.97 100.15% 15-Jan 35.50 (4.41) -11.05% 15.56 78.03% 19-Jan 39.36 3.86 10.8796 19.42 97.39% 20-Jan 39.12 (0.24) -0.61% 19.18 96.1996 21-Jan 43.03 3.91 9.99% 23.09 115.80 22-Jan 65.01 21.98 31.08% 45.07 226,03% 25-Jan 76.79 11.78 18.12% 56.85 285,11% 26-Jan 147.98 71.19 92.71% 128.04 642.13% 27-Jan 347.51 199.53 134.84% 327.57 1642.78% 28-Jan 193.60 (153.91) -44.29% 173.66 870.91% 29-Jan 325.00 131.40 67.87% 305.06 1529.89% 1-Feb 225.00 (100.00) -30.7796 205.06 1028.39% 2-Feb 90.00 (135.00) -60.00% 70.06 351.35% 3-Feb 92.41 2.41 2.68% 72.47 363.44% 4-Feb 53.50 (38.91) -42.11% 33.56 168.30% 5-Feb 63.77 10.27 19,20% 43.83 219.81% 8-Feb 60,00 (3.77) -5.91% 40.06 200.90% 9.Feb 50.31 (9.69) -16.15% 30.37 152.31% 10-Feb 51.20 0.89 1.77% 31.26 156.77% 11-Feb 51.10 (0.10) -0.20% 31.16 156.27% 12-Feb 52.40 1.30 2.54% 32.46 162.79% 16-Feb 49.51 (2.89) -5.52% 29.57 148.29% 17-Feb 45.94 (3.57) -7.21% 26.00 130.39% 18-Feb 40.69 (5.25) 20.75 104.0696 19.Feb 40.59 (0.10) -0.25% 20.65 103.56% 22-Feb 46.00 5.41 13.33% 26.06 130.69% 23-Feb 44.97 (1.03) -2.24% 25.03 125.53% 24-Feb 91.71 46.74 103.94% 71.77 359.93% 25-Feb 108.73 17.02 18.56% 88.79 445.29% 26-Feb 101.74 (6.99) 81.80 410.23% 1. Mar 120.40 18.66 18.34% 100.46 503.81% 2-Mar 118.18 (2.22) -1.84% 98 24 492.68% 3. Mar 124.18 6.00 5.0894 10424 522.77% 4. Mar 132.35 8.17 6.58% 112.41 563.74% 5. Mar 137.74 5.39 4.0796 117.80 590.77% 8. Mar 194.50 56.76 41.21% 174.56 875.43% 9.Mar 246.90 52.40 26.94% 226.96 1138 21% 10-Mar 265.00 18.10 7.33% 245.06 1228.99% 11-Mar 260.00 (5.00) -1.89% 240.06 1203.91% 12-Mar 264.50 4.30 1.73% 244.56 1226.48%