Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ate: February 3, 1636. On that day, the infamous Dutch tulip bubble burst during an outbreak of the bubonic plague, illustrating that asset prices can

ate: February 3, 1636. On that day, the infamous Dutch tulip bubble burst during an outbreak of the bubonic plague, illustrating that asset prices can plummet just as quickly as they soar. Now, almost exactly 385 years and another pandemic later, Wall Street waits to see how long it will take for history to repeat itself. Shares of video game retailer GameStop Corp have soared 1,625% since the start of January. Driving the rally are individual investors who have been stuck at home for the last ten months of pandemic. Many have turned to online forums like and are buying the stock, some as a form of protest against hedge fund managers who wagered that it would fall. These amateur investors are buying with the savings built up over the coronavirus pandemic, two rounds of stimulus payments from government and near zero interest rates. The stock price rally to above $300 per share has motivated some small investors to pour even more money into a company that Wall Street analysts believe is worth slightly more than $13 per share. The surge increases the risk that individuals will get caught up in the euphoria and will face the consequences of an eventual crash. "I dumped my savings into GME (Gamestop), paid my rent for this month with my credit card, and dumped my rent money into more GME a user with the handle ssauron wrote on WallStreetBets. "And I'm holding. This is personal for me, and millions of others."

Prepare Memorandum for Gamestop Companies Act 2017. How can Gamestop raise capital in future?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Port Infrastructure Finance

Authors: Hilde Meersman, Eddy Van De Voorde, Thierry Vanelslander

1st Edition

0415720060, 978-0415720069

More Books

Students also viewed these Finance questions

Question

Calculate the missing values

Answered: 1 week ago