Episode 180: Why is Gamestop So Hot?

•  SCENARIO #1:   

• Björn is a hedge fund manager who saw that GameStop was trading at $15. He then went to his prime broker and said, “let me borrow these shares at $15. And I’m going to sell it to someone else.” The idea was, later on, if the stock went down, he would buy it back for $5, and therefore earn $10 as a return of that difference. Knowing that GameStop was struggling to keep stores open, was this the best decision for Björn?

• SCENARIO #2:  

• Domantas is interested in making money from the GameStop fiasco. Should he look into buying stock from GameStop or look elsewhere because he missed the boat?

• SCENARIO #3: 

• Mozhan is a young woman looking to increase her wealth. She was interested in investing in stocks, but is weary that she could lose lots of money like what happened to some people involved in the GameStop crisis. Should she be wary of all stocks or will her money still be safe investing it in stock?