Research the trading activity in GameStop shares about short squeeze that happended January 2021.

Your responses must demonstrate your ability to:

Classify the behavioural finance theories

Explain how the theories apply to the case study specifically

Predict the outcome for investors

Provide suggestions for changes to regulation

All responses must:

address all parts of each question with examples as appropriate

use clear and concise language to ensure the intended meaning is understood

Read each question carefully. 100 words for each questions.

1. Explain how one type of behavioural finance theory applies to the case study.

2. Explain how a second type of behavioural finance theory applies to the case study.

3. Explain how a third type of behavioural finance theory applies to the case study.

4. What do you think the outcome will be for market participants? Why?

5. What do you think regulators can do to improve the outcome for investors? How will this improve the situation?

With references.