A note on GameStop, short squeezes, and autodidactic herding: An evolution in financial literacy?

Research output: Contribution to journalArticlepeer-review

Abstract

This note explores a secondary effect of the GameStop short squeeze event and links the exalted focus of retail investors on meme stocks to financial literacy and autodidacticism. From an overview of stylized facts about the short squeeze of GameStop based on high frequency data, short interest, and key figures of related derivatives, it is shown that these financial concepts are reflected in keyword searches across multiple platforms. This self-education with regard to financial terms, keywords, and products and the understanding of basic market speculation mechanisms such as short sales plays a significant role for the influx of retail investors.

Original languageEnglish
Article number102229
JournalFinance Research Letters
Early online date12 Jun 2021
DOIs
Publication statusEarly online date - 12 Jun 2021

Bibliographical note

Publisher Copyright:
© 2021 Elsevier Inc.

Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.

Keywords

  • Financial literacy
  • GameStop
  • Meme stocks
  • Reddit
  • Short squeeze

ASJC Scopus subject areas

  • Finance

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