At the height of the frenzy surrounding so-called “meme stocks” – brokers and trading platforms restricted transactions in retail investor-sponsored names like Game Stop Corporation GME and AMC Entertainment Holdings Inc AMC on January 28, 2021.
The restrictions were placed by brokers such as Robin Hood, Interactive Brokers, Karl Schwab, E*Tradeor WeBull.
Last year in June, a report from the Congress House Financial Services Committee (HFSC) has been published. representative Maxine water (D-California) highlighted four main findings the HFSC probe.
One of the key takeaways was that broker-dealers, experiencing the most severe liquidity crunch, imposed the most sweeping restrictions on meme stock trading. restrictions by Robin Hood led to more than 30 user lawsuits.
The investment: If an investor put $100 each in GameStop and AMC on January 27, 2023, and those companies’ shares reached the daily highs they were trading at on January 28, 2021, here’s how much they would have. Note that on this day in 2021, AMC was trading at $16.50 and GameStop was trading at $120.75.
| investment | Date of purchase/listing | total amount of the purchase | purchase price | get shares | Worth it when the price shoots up to the MemeStock hype | Percent Change |
|---|---|---|---|---|---|---|
| AMC Entertainment Holdings Inc (AMC) | January 27, 2023 | $100 | $5.51 | 18.15 | $299.45 | 199.45 |
| GameStop Corporation (GME) | January 27, 2023 | $100 | $22.82 | 4.38 | $529.14 | 429.14% |
The investor would have won 199.45% and 429.14% on their AMC and GameStop bets, respectively. The $100 invested in AMC would turn into $299.45, while the same amount of GameStop stock would have returned $529.14.
Continue reading: If you had invested $1,000 in Donald Trump NFTs, here is what you would have now:
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