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Smart Reads of the Week: Stopping the Game
By The Smart Investor  •  January 31, 2021
This week has been somewhat unusual, though that may be an understatement. Media outlets and articles are being written on a relatively obscure company called Gamestop (NYSE: GME). The gaming retailer’s share price has skyrocketed more than ten-fold over the past month , with most of the sharp rise coming in just the last couple of days. This whole saga started when the retail masses, represented by anonymous individuals posting on a forum called Reddit, started to unite and call for a concerted effort to artificially inflate the share price of Gamestop. What happened next is probably going to go down in history books. Due to frenzied buying, the share price of this unprofitable company staged a massive surge, thereby frustrating short-sellers who aimed to profit from the decline in its stock price. In a nutshell, the whole fiasco may very well reveal itself to be a well-orchestrated “pump and dump” scheme designed to suck in gullible retail investors....
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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