The Reddit-driven surge in movie theater chain stock AMC caused several stops in trading on Wednesday as small online investors continue to pour money into companies that hedge funds are betting against.
RT’s Boom Bust talks to Michele Schneider of MarketGauge.com to find out if the so-called ‘meme’ trading is the new reality for the stock market.
According to Schneider, as long as Wall Street hedge funds continue to manipulate the stock market, small independent investors will continue to fight back.
“The bigger problem is … there is still nothing being done with the fact that these hedge funds can go short,” says Schneider, referring to short-selling or betting on the stock price of a company to go down.
“They [hedge funds] have very little regulation … and they face very small fines if they actually get caught. It seems the regulators are kind of helpless and powerless when it comes to all of this … So, as long as that persists, then I think that this is the new normal, that you have this crowd coming in and they’re able to send these stocks flying,” she said.
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