The recent trading frenzy around GameStop Corp and other so-called "meme" stocks highlights shortcomings and challenges in the U.S. markets as retail investors become a bigger presence, exchange leaders said on Tuesday.
By Reuters Staff
1 Min Read
FILE PHOTO: GameStop logo is seen near displayed stock graph in this illustration taken February 2, 2021. REUTERS/Dado Ruvic/Illustration
(Reuters) - Shares of GameStop Corp slid further in early trade on Tuesday, continuing a slump that has seen the videogame retailer’s stock shed a third of its value so far this week.
The company’s shares were down 16.4% at $184, on track for their worst weekly performance since early February, with a drop of more than 30% since Friday’s close.
Other so-called meme stocks, popular with online retail traders, declined early in Tuesday’s session, with cinema operator AMC Entertainment Holdings Inc down 8.6%, while headphones maker Koss Corp fell 7.1%.
Number of active clients up 60% to new record IG had ‘unprecedented spike in new client demand’ (Adds share move, details on targets)
March 11 (Reuters) - Online trading platform IG reported a surge in third-quarter revenue on Thursday, thriving on the retail frenzy in stock markets this year that propelled shares in some beaten-down U.S. stocks higher.
IG, which gives retail investors leveraged access to more than 17,000 financial markets through its platform and mobile apps, said the number of active clients leapt 60% in the three months to Feb. 28 from a year ago to a record 230,100.
“The group saw an unprecedented spike in new client demand, largely in response to heightened news flow relating to certain listed U.S. stocks,” IG said in a statement on Thursday.
A chunk of President Joe Biden's coronavirus relief package is poised to end up in the stock market and could provide a boost for GameStop and other stocks embraced by individual investors active in online social media forums.
The U.S. Securities and Exchange Commission (SEC) on Wednesday named climate-related risks, fintech, and conflicts of interest for brokers and investment advisors as priorities for the agency's examination team in 2021.