In December 2020, GameStop was struggling video games retailer that…

Question Answered step-by-step In December 2020, GameStop was struggling video games retailer that… In December 2020, GameStop was struggling video games retailer that was hit hard by the covid pandemic. A $13billion hedge fund firm Melvin Capital saw an opportunity to make profit from betting against GameStop’s share price or short selling. Short selling is legal and it’s a way of profiting when the price of an asset falls. This was a normal and unremarkable event until a Reddit forum called r/WallstreetBets decided to start a campaign to buy GameStop shares. They thought it was time to send a message to short sellers and also that the stock price of GameStop was undervalued. This lead to astronomical increase in the share price and caused massive losses for short-sellers. GameStops’s shares hit a low of $2.57 in 2020 before rising to $18.84 on December 31 st ,2020 and this trend is continuing till date. What are the ethical considerations while colluding online to push up share prices. Discuss in line with your personal code of ethics Business Management Project Management MBA ZG535 Share QuestionEmailCopy link Comments (0)