Welcome to the Stay Wealthy Podcast. I'm your host Taylor Schulte, and today I'm keeping it light,

and I'm jumping on to share a couple of quick thoughts on all of the news surrounding GameStop,

stock, and Reddit. And my guess is that most of you are up to speed with this story. It's pretty hard to

avoid it these days. If not, the Wall Street Journal podcast published a great episode last week,

breaking it all down in plain English, which is my favorite. So if you want to get caught up,

you want to understand what's going on. Go check out the Wall Street Journal podcast. Last week's episode,

they also did a follow-up episode yesterday. So go check those out if you want to get caught up.

But in short, last week, millions of individual investors on Reddit, which is an online forum,

millions of these individual investors banned together to buy GameStop stock. Game stock is a video game

retailer, physical retail stores you've probably seen in malls and strip malls. So these individual

investors banned together to buy this stock, sending the stock price through the roof. And by through

the roof, I'm talking about a gain of more than 1,500 percent.

The reason that they went after this stock was that they knew through publicly available data

that large multi-billion dollar hedge funds were shorting the stock. In other words,

these multi-billion dollar hedge funds were betting that this stock was going to go down.

And they had a lot of money on the table, betting that it was going to go down. So by all these

individual investors banning together and buying the stock all at once and driving the stock price

up, their hope was that these multi-billion dollar hedge funds that to them represent Wall Street would lose money.

And some of these hedge funds did lose money.

Some of them lost a lot of money.

But this story is not over yet, I promise.

And I think there's a lot of misconceptions and a lot of things about the system behind the scenes that not a lot of investors know about.

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