It Isn’t Just AMC. Retail Traders Increase Pull on the Stock Market.

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Nonprofessional investors have driven up the stock prices of companies ranging from GameStop to AMC, and are continuing to upend financial markets and build on their forceful entrance into the trading arena last year

Here are four ways individual investors continue to shape every corner of the U.S. market.For years, individual investors’ trading activity rarely made a splash on Wall Street. That started to change in 2019, when online brokerages moved en masse to commission-free trading. The Covid-19 pandemic furtherlast year, allowing those stuck at home to try their hands at trading through historic market volatility.

Those figures have edged down since January, but Mr. Tabb expects individual investors’ elevated levels of activity to last. Take, for example, a basket of meme stocks that feature prominently on Reddit’s WallStreetBets platform. Data from VandaTrack shows that investors moved into the basket—which features companies including GameStop, AMC andInflows into the basket have surged again in recent weeks, but already, data shows, the tide is turning. The price of the basket has fallen 17% over the past week, Vanda Research said in a note Wednesday morning, as flows into the stocks have also begun to slow.

Among individual companies, short interest has fallen precipitously. GameStop’s short interest currently hovers around 21%, compared with more than 100% last year and at the start of the January meme-stock trading frenzy, according to Dow Jones Market Data. Several other meme stocks popular on social media have seen short interest decline substantially.

 

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you mad bro? GameStop wallstreetbets wallstreetbets AMC_TV

Are the terms 'Nonprofessional investor' and 'individual investor' synonymous? This article seems to use the terms interchangeably.

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