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Home / Tips and Tricks / GameStop’s stock spike is fueled by jargon from Reddit’s WallStreetBets community. Here’s what it means

GameStop’s stock spike is fueled by jargon from Reddit’s WallStreetBets community. Here’s what it means



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Some stocks are up as a result of meme stocks. This is why.

Sarah Tew / CNET

Who would have thought a Reddit community could take off a stock? Retailer of video games GameStop’s stock rose to a record high from nearly $ 373 a share on Wednesday, regularly below $ 20 a share this year. Why is this happening now? Because small investors use Reddit communities, such as WallStreetBets (which has grown by 500,000 users in the past three days), to boost “meme shares”, creating short sales and short squeezes. And it’s not just GameStop. Other companies, such as AMC and Nokia, were also affected by the coordinated rise.

No, this doesn’t mean you should drop everything and fully invest in one of these companies. Some call the market manipulation a ‘Ponzi scheme’, and the stock price is likely to fall as the buzz dies away. In fact, broker TD Ameritrade limited trading in the GameStop and AMC shares Wednesday in response to the runaway growth.

If you decide to dive into the stock market – and we don’t advise you in either direction – here are some top tips about investing, and a little robo advisors who can help you.

Part of what’s so unusual about the GameStop stock spike is the vocabulary used to drive the trading action.

Here’s a sample and what the terms mean:

  • Stonks: An intentional spelling mistake of stocks. Sometimes Meme Man appears when used in a meme (see below).
  • Diamond hands: When a trader is willing to hold his shares or securities for a long time.
  • Missiles: If someone wants a stock price to skyrocket.
  • Hold the line: Holding onto a stock even if it declines in value.
  • “We love the stock”: A meme used for a currently trending stock.
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Stonks is often associated with Meme Man, in the photo.

Know your meme

There is more information on this how Reddit and Elon Musk caused the GameStop wave. Here is also everything you need to know about stock splits and five investment accounts everyone should have. Plus, check out the funniest GameStop Reddit jokes and memes.


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