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GameStop surge: Massachusetts Secretary William Galvin calls for NYSE to suspend GameStop trading for 30 days
The stock’s value has shot up 1,800% in a month
Massachusetts Secretary of the Commonwealth William Galvin is calling for the New York Stock Exchange to suspend trading in GameStop stock for a month after its stock recently surged following a major boost from an army of investors on Reddit.
“I am closely monitoring the situation with GameStop stock, because I am concerned that Massachusetts investors will be seriously harmed,” Galvin said in a statement on Wednesday.
“I have called for the New York Stock Exchange to suspend trading in GameStop stock for 30 days, to allow for a cooling off period,” he added. “I am hopeful that federal regulators will be looking into this as well.”
A spokesman for the U.S. Securities and Exchange Commission declined to comment.
The Reddit investors from “Wallstreetbets” have helped the stock skyrocket by about 1,800% in a month.
GameStop stock was at $18.84 on the final day of 2020. On Wednesday afternoon, the value was up to $359.63.
The army of smaller-pocketed, optimistic investors has been throwing dollars and buy orders at the stock of GameStop — in direct opposition to a group of wealthy investors who had been counting on the stock price to plunge.
These wealthy investors “shorted” the stock, which means they borrowed shares and sold them, hoping to buy them back at a cheaper price and pocket the difference.
But such bets have been disastrous recently, and the meteoric stock rise pushed some short sellers to get out of their bets, done by buying shares of the stock. That helped accelerate its momentum even further.
The stock’s value has shot up 1,800% in a month
Massachusetts Secretary of the Commonwealth William Galvin is calling for the New York Stock Exchange to suspend trading in GameStop stock for a month after its stock recently surged following a major boost from an army of investors on Reddit.
“I am closely monitoring the situation with GameStop stock, because I am concerned that Massachusetts investors will be seriously harmed,” Galvin said in a statement on Wednesday.
“I have called for the New York Stock Exchange to suspend trading in GameStop stock for 30 days, to allow for a cooling off period,” he added. “I am hopeful that federal regulators will be looking into this as well.”
A spokesman for the U.S. Securities and Exchange Commission declined to comment.
The Reddit investors from “Wallstreetbets” have helped the stock skyrocket by about 1,800% in a month.
GameStop stock was at $18.84 on the final day of 2020. On Wednesday afternoon, the value was up to $359.63.
The army of smaller-pocketed, optimistic investors has been throwing dollars and buy orders at the stock of GameStop — in direct opposition to a group of wealthy investors who had been counting on the stock price to plunge.
These wealthy investors “shorted” the stock, which means they borrowed shares and sold them, hoping to buy them back at a cheaper price and pocket the difference.
But such bets have been disastrous recently, and the meteoric stock rise pushed some short sellers to get out of their bets, done by buying shares of the stock. That helped accelerate its momentum even further.