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  • It may have been long dismissed as dumb money, but the game stock saga has shown how retail investors can make stocks move in ways that defy logic.

  • Shares.

  • If the video game retailer surged nearly 700% over the past week after a group of so called Reddit bro's took on hedge fund pros, amateur investors air really necessary for the health of the market, the influences, the issue.

  • So you want them in the market.

  • But you don't want them triggering, Um uh, irrational results.

  • The stocks interstellar search has sparked cause for regulatory scrutiny.

  • I I think that regulators need to step in and, uh, and figure out how to regulate this a little better, uh, gang up on a short squeeze, uh, to make a quick profit.

  • It's not really what capital markets or for Let's Look at the existing regulation and how the slugfest could change.

  • Wall Street U.

  • S law bars the spread of false or misleading information designed to manipulate investors into buying or selling securities like that seen during the rash of pump and dump schemes.

  • During the early two thousands dot com boom, regulators are likely to explore whether Reddit was used in a similar way, very reminiscence of 1999 and the dot com era.

  • Because Gamestop really have evaluation of $160 a share of per stock or $100?

  • Absolutely not.

  • But you know, there are people out there that are are trading and speculating and, you know, that's why they're pushing these stocks up.

  • Hiring on.

  • I don't even call it invested.

  • It's really kind of speculating in these types of stocks.

  • Three U.

  • S.

  • Securities and Exchange Commission said it was aware of the market volatility on was assessing the situation.

  • Experts say the agency will likely look at whether the messaging was manipulative by both investors holding stock long term on activists betting against it.

  • Wild swings in game stocks shares let the New York Stock Exchange to halt trading in the company several times.

  • Lawyers say there was sufficient confusion toe warrant, a longer suspension.

  • It could prompt a broader review of share suspension rules.

  • The Gamestop incident has also shone a spotlight on low cost retail trading platforms.

  • Nowadays, anyone with a smartphone can trade stocks for free, prompting millions of ordinary Americans to dabble in investing there are consumer protection concerns that many do not properly understand the risks.

  • It's a little like a Ponzi scheme because if you're the last person holding those shares at $160 a share, and you bought up there $158 and now it's trading at $88.

  • Well, you just got stuck with the last part of the of the trade and you lost a lot of money.

  • Analysts warn.

  • Chat room chatter is fueling huge and irrational share price moves, raising concerns of it, upending the market if not properly policed.

It may have been long dismissed as dumb money, but the game stock saga has shown how retail investors can make stocks move in ways that defy logic.

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