Did the GameStop saga change your view on traditional finance? How?

[fitboyawesome]

After the GameStop debacle, did you ever reconsider aspects of traditional finance? Did particular aspects, such as market principles, regulatory processes, or institutionalized investors, that you began to analyze? The GameStop events made many people doubt traditional values. What interesting observations or insights can you share that have influenced your views about traditional finance, especially with regards to the case of GameStop? Furthermore, what is the influence of Superstonk phenomenon in shaping your opinions on these issues?

 

[jhnsonamelia]

The GameStop situation prompted a reevaluation of certain aspects of traditional finance for many individuals. Some key considerations included:

1. Market Mechanisms:
   • The event raised questions about the effectiveness of certain market mechanisms, such as short selling and the potential for retail investors to collectively influence stock prices customised branded products.
   • The rapid and significant price volatility in GameStop's stock led to discussions about market resilience and the impact of speculative trading.
2. Regulatory Practices:
   • There were discussions about the need for regulatory oversight and whether existing regulations adequately address potential risks associated with online forums and social media influencing trading behavior.
   • The situation prompted calls for regulatory reviews and potential updates to address evolving dynamics in the financial markets.