Mr. Andrew N. Vollmer
In her testimony, Professor Fletcher, a former lawyer and expert in financial regulation, suggested that the meme stock episode undermined faith and proper functioning of American capital markets. When the fundamental operation of the markets is undermined, there are far-reaching effects that extend beyond the capital markets, affecting consumer savings, investments, retirement plans, and the rest of the real economy.
The recent market volatility stemming from trading in meme stocks , most notably GameStop, has raised concerns as to the integrity, stability, and overall health of the markets.
Read the full testimony below:
The only buy-sider on the witness list for Tuesday is Rachel Robasciotti, the founder and CEO of Adasina Social Capital, which manages the Adasina Social Justice All Cap Global ETF. Robasciotti started her prepared testimony by musing about how the Gamestop saga reminded her of the infamous MIT blackjack team, whose exploits were depi
Who gets to define best execution? Is T+1 or T+2 better for market stability? What even is payment for order flow? The Senate Banking Committee tackled all these questions and more at a dynamic Tuesday morning hearing.
Senate Banking Committee Hearing: “Who Wins on Wall Street? GameStop, Robinhood, and the State of Retail Investing”
The
Senate Banking Committee will hold a hearing today on the GameStop/Reddit/Robinhood saga entitled;
“Who Wins on Wall Street? GameStop, Robinhood, and the State of Retail Investing.” The hearing is scheduled to commence at 10AM.
The hearing will review the concerted effort by individuals chatting on Reddit to create a short squeeze in highly shorted securities. GameStop emerged as the Marquee security in this new phenomenon that saw its share price break through the realm of reality when it came to fundamental valuation.
Aaron KellerJan 28th, 2021, 6:19 pm
The ongoing saga surrounding GameStop’s skyrocketing stock price, as fueled by Redditors on a subreddit called “WallStreetBets,” is drawing the legal attention of regulators and professors.
In brief, professional investors tried to make money betting against GameStop’s future chances of success, and Redditors rallied a massive purchase of the company’s stock price to stiff the pros and force them to lose money.
GameStop’s stock price reached a dizzying high of $492.02 per share just after 2:00 p.m. on Thursday after registering at about $126 per share two and a half hours earlier. The day before, the price maxed out at about $372 per share. The day before that, the price topped out at about $148 per share. The company spent almost its entire existence prior to the Redditors’ efforts selling its shares at between $5 and $20 each, save for a few spikes lasting several months each into the $50 range. Noting was ever close to the