A stable, well-functioning financial market for allA stable, well-functioning financial market for allFI Analysis No. 40: Winners and losers in the trading of meme stocks
In 2021, Gamestop, a relatively unknown American company, experienced a sudden increase in its stock price. The price increase had been orchestrated by a group of investors who had collaborated via a social media platform and successfully drove up the price of the stock by 1,500 per cent within days. Other stocks, including AMC, had exhibited similar patterns, giving rise to the term "meme stocks" due to the humorous elements found in the online forums where these stocks were discussed.
This study seeks to understand the meme stock event and answer three questions: who participated in these stock trades, who incurred losses, and who made gains.
For Finansinspektionen, which monitors the financial market, understanding such events is essential. The answers to these questions will also provide insights into this specific situation and in more general terms the potential risks associated with speculative trading.
