In
a minimum of 250 words, discuss the following while answering the questions
below:
In late January 2021, retail
investors from a subreddit called “Wallstreet Bets” generated a large
amount of interest in purchasing stock in GameStop, a retail video game store.
Hedge funds like Melvin Capital had shorted the same stock, so when the price
of the stock rose from below $20 to over $400, they suffered almost $20 billion
in losses. The controversy multiplied when some trading platforms, especially
Robinhood, prevented investors from buying additional shares in GameStop. The
resulting media frenzy caused many to consider (or learn) what shorting a stock
entails, what counts as “market manipulation”, and the ethics and
incentives of trading platforms like Robinhood. The narrative that emerged was
like that of David vs. Goliath, the “little guy” vs. the big
financial firms.
How do investors short stocks?
What is the difference in the downside risk of
purchasing a stock vs. shorting a stock?
Is short selling an ethical practice?
Is it ethical for individual investors to work
together to “pump up” the price of a stock?
What about large firms
engaged in similar practices?
Do trading platforms have an ethical obligation
to customers to allow both buying and selling of any stock they have on their
platform?
Please do not use personal opinions unless
you back them up with research.
NO COVER PAGE OR RUNNING HEADER IS NEEDED.
See attached Rubric.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more