The Consideration of Meme Stock

Case Study of GameStop Saga

DOI

10.2991/aebmr.k.220307.033How to use a DOI?

Keywords

GameStop; Meme stock; Financial regulation; Behavioral economics

Abstract

The stock price riot of GameStop in the American stock market has aroused widespread concern. In previous years, the company’s share price fluctuated between a few dollars and more than a dozen dollars. Some American investors, mainly individual investors, began to rush to buy the company’s shares, and the company’s stock price rose beyond the fundamentals. As one of meme stocks, through studying the GameStop stock, we found significant problems in the existing stock market supervision. The prevalence of social media in the information era has led to the current supervision system not being able to deal well with unexpected situations like GME events, which is likely to lead to financial risks. This article tries to analyze the investment motivation of retail investors from a Behavioral-Economics perspective. It concludes that resistance and herd effect may be the primary motivation to purchase shares. Social media platforms should unite with regulators to play the role of supervision. Not only do regulators need to supervise the stock market, but social media platforms can also supervise the direction of public opinion at the source.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Hanqi Cao
AU  - Siyuan Liu
PY  - 2022
DA  - 2022/03/26
TI  - The Consideration of Meme Stock
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 211
EP  - 214
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.033
DO  - 10.2991/aebmr.k.220307.033
ID  - Cao2022
ER  -