Let's just assume that there are 100 shares of GameStop (worldwide) and go from there. Let's assume that the price per share/stock before all of this was $100 (in a "good" economy, etc.). How would this all work?
A nice timeline, step by step, line by line would be nice. For ex:
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Stock is selling at $100 per share (100 shares total). June 20XX
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Economy starts tanking, stock now at $95 per share. August 20XX
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People start predicting that it will go down further, thus they start "betting" (insert definitions that are accessible and not jargony), etc.
^ something like that would be nice. Thanks!
uh from my understanding (read: what I've heard through osmosis), a bunch of hedge funds made a bet that Gamestop stock's gonna go down and if it did they'd make money. A bunch of redditors with gambling addictions decided to dump a bunch of their money into the stock buying it which in turn inflated the stock price.
The more the stock price goes up, the more money the hedge funds loose due to holding their bet that prices would go low. and inversely the higher the price goes the more money those redditor dorks make. The hedge fund ghouls got like 2 billion in private bailouts to try and not only not go bankcrupt, but also try to manipulate the stock into crashing so they can make bank if not just break even while teaching the redditor dorks to not play with the big dogs.
from how it's looking today so far, the redditors are winning, but now other investors are smelling blood in the water and turn the gamestop stock into an absolute shitfest that can go either way.