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You are here: Home / Opinion / Study the stock market before jumping on trends

Study the stock market before jumping on trends

February 5, 2021 by Optimist Editorial Board Leave a Comment

After the recent GameStop scandal rocked the way that young people view stocks, many students have entered the markets in the hopes of replicating the Reddit trend that left many Wall Street investors and hedge fund managers in awe. While investing can be a great opportunity for students to make money, it is important that we recognize the volatility of the stock market and how important it is to educate yourself before jumping into trends.

As GameStop’s stocks started to decrease in value, investors began short-selling their stocks to profit off the decrease. Noticing what was going on and believing that short-selling was unethical, hundreds of Reddit users on a forum dedicated to Wall Street called r/WallStreetBets bought pieces of GameStop stock at that low price, causing the prices to surge and investors to lose billions. The hedge fund investors were forced to pay back what they had borrowed and file for bankruptcy, causing prices to surge once again.

Following in this footstep, many people have been flocking to other stocks that have large amounts of short trades and replicating this action, causing hedge fund investors to lose billions once again and Wall Street to question whether this practice should be illegal and the public to question whether they should follow suit.

On the bright side of this scandal, many are learning that the stock market isn’t just a way for the rich to get richer and many young people have begun investing that have never before. Among these are college students.

Over the weekend, social media buzzed as people bought stocks in GameStop, AMC and Dogecoin in mass. However, AMC and GameStop’s stocks have fallen just as quick as they rose, and those who were hoping to stick it to investors and earn an extra buck are left with little reward as of now.

Stocks are complicated, and while some are hoping that these shares will increase back in price after this weekend’s dip, others are doubtful. Before buying into stocks, make sure that you study the share prices and are careful before throwing your savings into such a high-risk, high-reward scenario. While most college students cannot afford a financial advisor, studying trends and whether they are reliable before diving in to stocks can mean the difference between having savings and being bankrupt, as many are finding out his week as stocks settle at a much lower price than Redditors hoped for.

Filed Under: Editorials, Opinion

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You are here: Home / Opinion / Study the stock market before jumping on trends

Other Opinion:

  • Reflecting on the year that changed the world

  • Unpaid internships put low-income students at a disadvantage

  • Ted Cruz won’t resign, but that doesn’t mean we should just move on

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"People need to hold on to the fire and hold on to the drive that they are using in attempts to get a resignation and use that to campaign for new officials to take his place in the Senate." Read more from Assistant Managing Editor Sydney Varner below:
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"People need to hold on to the fire and hold on to the drive that they are using in attempts to get a resignation and use that to campaign for new officials to take his place in the Senate." Read more from Assistant Managing Editor Sydney Varner below: ...

Ted Cruz won't resign, but that doesn't mean we should just move on - Optimist

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The Optimist

5 hours ago

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The department of agriculture and environmental science is building a greenhouse that will not only benefit students but also communities around Abilene. Read more below: ...

New greenhouse connects campus with surrounding communities - Optimist

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The department of agriculture and environmental science is building a greenhouse that will not only benefit students but also communities around Abilene. Dr. James “Jim” Carpenter, department chair and associate professor, said that the greenhouse will be used mostly for plant science classes. S...
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