GameStop’s stock cost took off in late January as merchants in the r/WallStreetBets Reddit people group took on Wall Street multifaceted investments that bet the computer game retailer would fall flat. GameStop shares bounced momentarily to over 14,300%, and have since come slamming down. The market instability grabbed the eye of administrators in Congress.
On Thursday, the House Committee on Financial Services is holding a virtual hearing, named Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide. The CEOs of Reddit, Robinhood, Citadel, and Melvin Capital will be in participation, alongside the Reddit banner who led the GameStop purchasing furor and is presently blamed for market control.
When is the Hearing?
The House Committee on Financial Services will hold the hearing on Thursday, Feb. 18 at 9 a.m. PT/12 p.m. ET.
Where Would I be Able to Watch the Hearing?
The Livestream will be accessible on the House Committee on Financial Services’ YouTube channel. C-Span will likewise convey the meeting.
Why is There a Hearing?
During the seven-day stretch of Jan. 25, GameStop and other “image” stocks saw their offer costs increment abruptly and significantly. Assuming acknowledgment was a gathering of brokers on the subreddit r/WallStreetBets. The individuals who purchased portions of the computer game retailer early were seeing enormous returns.
On Jan. 28, well-known exchanging application Robinhood said it would stop any acquisition of GameStop and other “image” stocks, however, it permitted stocks to exchange again the following day. The move incited a quick reaction from clients and legislators.
A few individuals from Congress, including Rep. Alexandria Ocasio-Cortez, Rep. Rashida Tlaib, and Sen. Ted Cruz, required a conference on Robinhood’s activities. On Feb. 3, Rep. Maxine Waters, a Democrat from California and the administrator of the House Committee on Financial Services, told Cheddar there would be a conference to explore what occurred.