Tag: Reddit

When retail investors grouped on Reddit, a social media platform, to buy shares in a number of heavily shorted firms last month, commentators inferred that investors can move markets through online trading. The episode cost short-selling hedge funds millions. It also triggered questions about equity market valuations and whether central banks have been too generous in their pandemic responses.

Making headlines currently is the battle between retail investors and institutional investors, as the former take on the Wall Street establishment, in particular established hedge fund managers practising a short-selling strategy. Ostensibly a David and Goliath battle, the reality is a little more complex.