Capital Markets Cocktails: GameStop Short Squeeze Debate
We are delighted to bring you our most recent episode of Capital Markets Cocktails, where we will be chatting with Lambert & Co. and TiiCKER Founder and CEO, Jeff Lambert. We will be presenting a point-counterpoint discussion regarding the recent trading in GameStop and other “meme” stocks that initiated a classic short squeeze by a group of Reddit users from the “Wall Street Bets” sub page.
The recent trading action in GameStop shares has created some controversy, as a group of retail investors on Reddit identified a number of stocks, including GameStop, which had significant short positions. By combining their smaller efforts to buy the shares, the increased share price prompted many of the shorts to cover, generating further upward pressure on the share price. In the end, GameStop shares, which were trading as low as $4 over the past year, went from $17.25 on January 1 to a high of $347.51; still trading above $60.
Amid the trading frenzy, the market saw trading outages at popular retail trading app Robinhood as well as larger retail brokerages like TD Ameritrade and E*Trade, among others. In addition, some trading firms raised the ire of retail traders and Redditors as they restricted trading on GameStop and other meme stocks, preventing further share purchases. These actions raised concerns about how these rules were applied and potentially damaged the image of market fairness amid a time of deeply waning institutional trust among the broader population. On this episode, we also discuss the rising power and influence of individual investors and how issuers can build relationships of trust and loyalty with investors that potentially could be good customers and brand ambassadors.
With the discussion of the markets, which started with the agreement signed under the buttonwood tree on Wall Street between Hanover and Pearl Streets, Jeff Lambert has selected the Manhattan as our cocktail today!
- Two parts Rye Whiskey to one part sweet Vermouth
- Two dashes of Angostura bitters
- Ice and a maraschino cherry for garnish
Fill a pint glass with ice. Add the rye, vermouth and bitters and stir well. Strain into a chilled coupe and garnish with the cherry.
Join us Thursday, February 11 at 4:30 p.m.