{"id":19470,"date":"2021-01-29T12:52:55","date_gmt":"2021-01-29T18:52:55","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=19470"},"modified":"2021-04-21T08:06:21","modified_gmt":"2021-04-21T13:06:21","slug":"gme-amc-bb-and-other-high-flying-stock-losses","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/","title":{"rendered":"GME, AMC, BB and Other High Flying Stock Losses"},"content":{"rendered":"<h2>Retail Investors Make Stock Market History<\/h2>\n<p>The week of January 25, 2021, saw a remarkable market event where retail investors bid up the price of a handful of stocks in an attempt to force a \u201cshort-squeeze\u201d on major Wall Street hedge funds.\u00a0 When an investor \u201cshorts\u201d a stock, which is a bet the stock is going to go down in price, the investor borrows the shares and then sells them at the existing price.\u00a0 If the share price goes down, the investors will \u201ccover\u201d the short by buying at the lower price to return the borrowed shares, capturing the difference between what the investor sold the shares at and the cost to buy the shares back in order to return them.\u00a0 Conversely, if the stock price goes up, the investor has to buy the shares at a high price than what the investor received when they were sold in order to return the borrowed share and loses the difference on the short play.<\/p>\n<p>When shorting a stock, since the investor does not own the stock, the investor\u2019s position is done on margin, that is, using credit from the brokerage firm.\u00a0 As the value of the stock increases, the margin balance increases.\u00a0 In such a situation, an investor can receive a \u201c<a href=\"https:\/\/www.investorlawyers.com\/blog\/when-margin-calls-lead-to-investor-fraud-losses\/\">margin call<\/a>\u201d, where the brokerage firm forces the investor to close the position.\u00a0 In a margin call from a short position, that means forcing the investor to buy the stock, regardless of the price, which is when there is this short-squeeze.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/\"  title=\"Continue Reading GME, AMC, BB and Other High Flying Stock Losses\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Retail Investors Make Stock Market History The week of January 25, 2021, saw a remarkable market event where retail investors bid up the price of a handful of stocks in an attempt to force a \u201cshort-squeeze\u201d on major Wall Street hedge funds.\u00a0 When an investor \u201cshorts\u201d a stock, which is a bet the stock is [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":19471,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3762,4055,3738],"tags":[4505,4504,3470,4506],"class_list":["post-19470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-investigations","category-featured-investigation","category-investor-fraud","tag-amc","tag-gme","tag-hedge-fund","tag-short-squeeze"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GME, AMC, BB and Other High Flying Stock Losses | Investor Lawyers<\/title>\n<meta name=\"description\" content=\"Retail investors bid up the price on GME, AMC and others in an attempt to force a \u201cshort-squeeze\u201d on major Wall Street hedge funds.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"GME, AMC, BB and Other High Flying Stock Losses | Investor Lawyers\" \/>\n<meta name=\"twitter:description\" content=\"Retail investors bid up the price on GME, AMC and others in an attempt to force a \u201cshort-squeeze\u201d on major Wall Street hedge funds.\u00a0\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/reddit-GME.jpeg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"GME, AMC, BB and Other High Flying Stock Losses | Investor Lawyers","description":"Retail investors bid up the price on GME, AMC and others in an attempt to force a \u201cshort-squeeze\u201d on major Wall Street hedge funds.\u00a0","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/","twitter_card":"summary_large_image","twitter_title":"GME, AMC, BB and Other High Flying Stock Losses | Investor Lawyers","twitter_description":"Retail investors bid up the price on GME, AMC and others in an attempt to force a \u201cshort-squeeze\u201d on major Wall Street hedge funds.\u00a0","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/reddit-GME.jpeg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"GME, AMC, BB and Other High Flying Stock Losses","datePublished":"2021-01-29T18:52:55+00:00","dateModified":"2021-04-21T13:06:21+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/"},"wordCount":814,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/reddit-GME.jpeg","keywords":["AMC","GME","Hedge Fund","Short-Squeeze"],"articleSection":["Current Investigations","Featured Investigation","Investor Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/","url":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/","name":"GME, AMC, BB and Other High Flying Stock Losses | Investor Lawyers","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/#primaryimage"},"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/reddit-GME.jpeg","datePublished":"2021-01-29T18:52:55+00:00","dateModified":"2021-04-21T13:06:21+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Retail investors bid up the price on GME, AMC and others in an attempt to force a \u201cshort-squeeze\u201d on major Wall Street hedge funds.\u00a0","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/#primaryimage","url":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/reddit-GME.jpeg","contentUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/reddit-GME.jpeg","width":2000,"height":1500,"caption":"reddit GME"},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/gme-amc-bb-and-other-high-flying-stock-losses\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"GME, AMC, BB and Other High Flying Stock Losses"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; 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