Meme stock/ #밈(Meme) 주식 - YouTube

On Reddit, an American online community, there is a stock discussion forum called ‘WallStreetBets.’

Stocks discussed and word of mouth here are called meme stocks.

A meme is a term for a funny photo or video.

This also applies to stocks.

When classified as a meme stock, ants flocked and soared, and when there was a boom, more

ants flocked again.

The term ‘meme’ was coined by British biologist Richard Dawkins in 1976 when he

published his book ‘The Selfish Gene’.

The word meme is a compound word of the Greek words 'mimesis' and 'gene'.

Transmission of cultures also requires intermediates such as genes.

The form of information that plays this role is a meme.

‘Meme stocks’ are stocks that have caught the attention of individual investors by word

of mouth on the Internet.

Since meme stocks are a new phenomenon, there is no official definition yet.

However, stocks that trade a lot after being targeted by individual investors can be seen

as meme stocks.

Meme stocks, especially online, are known through word of mouth, followed by intensive

purchases by individual investors, leading to massive increases in stock prices.

Meme stocks were born as a backlash against short sellers and hedge funds.

The birth of meme stocks is attributed to the fact that the short sellers sold a huge

amount of shorts when the game stop rose.

They prefer an investment method that kills short sellers.

In general, WSB ants buy stocks with a lot of short selling power and raise the price

at once to cause a short squeeze.

Short sellers should close their short positions when the stock price rises above a certain

level.

To do this, short sellers have to buy back the shares they borrowed and sold in the market

and return them.

When institutions jump in and start buying stocks that are rising in price, another price

surge begins.

This is called a short squeeze.

As the WSB surge continued, it was even created as an exchange-traded fund (ETF).

The BUZZ ETF is an ETF that invests in stocks that are frequently mentioned in WSB and social

networks.

According to the management company, since the index changes stocks on a monthly basis,

companies that are popular are excluded even if they are included.

When the short selling power builds up, an attack from the WSB is always started.

Therefore, it is becoming difficult for institutions to make short selling easily.

Even at the beginning of the year, it was estimated that hedge funds that took short

sales would lose about 80 trillion won in the Game Stop incident.

Of course, trading meme stocks isn't just for ants.

Institutions also buy and attack the same institutions, or buy stocks through block

deals and sell them when they surge the next day.

Nevertheless, the main axis are ants.

The meme stock craze is spreading across all stocks.

Meme stocks have skyrocketed and plummeted.

Like a game stop, it can go close to $500 and then plummet to $40.

In particular, companies with poor business conditions are targets of meme stock investors.

Specifically, institutional investors such as hedge funds and stock funds used short

selling to bet money on the decline in the stock price of a company that was hit by a

management crisis.

Short selling means selling something you don't have.

Borrowing and selling the stock of a company whose share price is expected to fall.