AMC Soars 300% Vertically
Short Selling Forces Continue to Give Up
[Asia Economy New York=Correspondent Baek Jong-min] The White House has also expressed concern over the sharp rise in GameStop stock that is shaking up the U.S. securities market.
White House Press Secretary Jen Psaki said during a press briefing on the 27th (local time), "Treasury Secretary Janet Yellen and the economic team are monitoring the sharp rise in GameStop stock prices."
Psaki pointed out, "This is an example showing that the stock market is not the only measure of the soundness of our economy."
Federal Reserve (Fed) Chair Jerome Powell, when asked about the surge in GameStop stock prices during a press conference that day, said, "I do not want to comment on specific companies or market movements," and declined to answer further.
Amid the confrontation between short sellers and individual investors, GameStop stock rose 134% that day, closing at $347. The increase was even greater, mocking concerns that arose after a 92% rise the previous day. Theater chain AMC's stock price surged by 300%.
GameStop short sellers have publicly disclosed that they could not withstand the stock price rise and have been closing their positions.
According to U.S. media, individual investors are seeking low-priced small-cap stocks with heavy short selling to find the next GameStop and are investing accordingly.
Some investors have even announced that they will donate the profits earned from GameStop and AMC to charitable organizations.
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