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Controversy Over GameStop's Stock Market Saga Explained

VOA News

   In recent days, American financial markets have been gripped by the
   saga of a video game retailer's soaring stock price.

   GameStop, which makes most of its money selling video games in stores
   across America, saw its stock price rise as much as 1,700% this week,
   backed by fans who believe it is unfairly undervalued by large
   investors who had bet billions that its stock would fall. As small
   investors championed their purchases of the retailer's stock in viral
   posts online, the stock rapidly rose in price, forcing the large
   investors to spend billions of dollars to cover their losses.

   The drama around GameStop's trading has drawn scrutiny from members of
   Congress, some of whom are calling for an investigation into the
   investors, companies and regulators involved.

   What happened to GameStop?

   GameStop is a retailer facing the same pressures as many others in the
   United States, where shopping trends and the pandemic have led more
   people to buy goods online instead of in stores. Wall Street investors
   started betting heavily against the company months ago, believing that
   its brick-and-mortar business model is doomed.

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