What’s with GME, AMC and BB, a FAQ
The simplest answer is that its stock price has skyrocketed — by somewhere around 8,000 percent over six months. The more complex answer is that its stock has become the central game piece in a financial power struggle between a major hedge fund, Melvin Capital, and a group of amateur stock traders who yell on the internet.
Mike Novogratz, an investor and former hedge fund manager, said the internet activity is the result of frustration that everyday investors are often locked out of lucrative opportunities, such as initial public stock offerings.
Like many companies that are in rough shape, GameStop was the subject of what's called short selling, in which professional investors borrow shares of stock to sell and then buy back later so they can return them, which lets them pocke...
