While her son isn't allowed to make transactions on his own, he has a custodial account in his name and pitches recommendations to his parents when he wants to invest in something. Eventually, Grinberg wants to let him take over his own account. She said that by letting him make his own decisions and suffer the consequences, he'll build a greater sense of responsibility. But she would do it only when he's a bit older, knowing that she has built a foundation with years of education about how financial markets work. She's heard of other parents, even her friends, giving kids money to invest without those building blocks first.
Over the last week, many people have made money because of GameStop who don't work for GameStop. The company's stock price jumped through the roof, benefiting retail investors who had been led in an ingenious coordinated effort by Redditors to short squeeze hedge funds that had made massive bets against the video game chain. The whole thing has minted a few millionaires (if they don't lose it all just as fast by holding on too long); spurred wall-to-wall coverage on CNBC, as the network keeps booking analysts and hedge fund managers losing their shit; and also led to a questionable, if satisfyingly anti–Wall Street, shout of "revolution." I wondered, though: What about the actual GameStop employees? There is a real working class somewhere in this revolution--the local managers and hourly employees trudging into suburban malls, masked and bleary-eyed, to sell video games.
GameStop Corp. shares surged ahead of the opening bell Monday, in the latest sign that frenetic trading by individual investors is leading to outsize stock-market moves. Class-A shares of the Texas-based games retailer popped 54% to around $100 a share in hectic premarket trading, suggesting they may extend their steep ascent when the market opens. More than two millions shares traded hands premarket, far above the average. By the close of Friday--when trading in GameStop's shares was briefly halted due to volatility--the stock had more than tripled in 2021, exceeding its previous record high from 2007. The rally has been fueled by individual investors, encouraging each other on social media to pile into GameStop shares and options.
A David and Goliath saga is unfolding in financial markets over the stock price of struggling retail chain GameStop. On Wednesday, Goliath walked away from the battle. A pair of professional investment firms that placed big bets that money-losing video game retailer GameStop's stock will crash have essentially admitted defeat. The victor, for now at least, is a volunteer army of smaller investors who have been rallying on Reddit and elsewhere online to support GameStop's stock and beat back the professionals. GameStop's stock surged as high as $380 Wednesday morning, after sitting below $18 just a few weeks ago. One of the two major investors that surrendered, Citron Research, acknowledged Wednesday in a YouTube video that it unwound the majority of its bet that GameStop stock would fall.