Five Things to Watch in Reddit Stocks Trading Mania

U.S. officials meet on Thursday to discuss two weeks of social media-fueled volatility in stock markets, as the trading frenzy around GameStop and other Reddit favorites calms.

** CONTROLS EASED – Robinhood, the online brokerage conduit for much of the past fortnight’s action, further eased buying restrictions on buying shares in GameStop and cinema operator AMC . On Wednesday it allowed trading in fractional shares, which encourages participation from smaller investors by reducing the size of the amount they need to bet. Its trading limit on GameStop shares is now 500 and on AMC 5,500.

** YELLEN CONVENES – U.S. Treasury Secretary Janet Yellen meets top officials on Thursday from the Securities and Exchange Commission (SEC) and Federal Reserve to discuss the recent market volatility. Although regulators have not yet signaled what form any official actions could take, potential targets could include retail brokers’ capital requirements. The SEC is also reviewing social media posts for signs of potential fraud, Bloomberg News reported.

** STOCK SWINGS – Frankfurt listed shares in GameStop dipped 12% on Thursday after steadying in the United States on Wednesday.

** VOLATILITY – The U.S. CBOE volatility index returned on Wednesday to levels last seen earlier in January, indicating the big swings caused by the frenzy have eased.

** SILVER CHARGE – Perth Mint’s silver coin sales jumped 23.5% in January from the previous month due to retail demand after calls to buy it on Reddit and other platforms. Silver prices have stabilized since Tuesday.

Writing by Sagarika Jaisinghani in Bengaluru; Editing by Bernard Orr and Patrick Graham

Source: Reuters

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News