Page 29 - Issue-30-En

ELITE Vol.1, Issue 30, April 2021 Happy

Ramadan

WallStreet Whales Vs. WallStreet Bets:

Mission "GameStop"

Jozeph George - 2nd year - economics

That public war between the " Wall Street Bets " group and " Wall ”Melvin Capital" And “Citadel" Billions of dollars, and what is
Street whales ", is known as investment funds on the shares of a worse is to encourage the businessman and the American
company GameStop got the attention of all economists and those billionaire, " Elon Musk " to trade on that share by tweeting on
interested in financial markets and even natural citizens all over the the social networking site Twitter. The investment funds,
world, as for the first time in history, a group of traders managed to especially. "Melvin Capital" and "Citadel" tried to escape from
bother the whales in the American stock market, as it was a matter of that crisis and put pressure on all parties to end this farce.
time until some of them declared their bankruptcy. As for the reason Indeed, they succeeded in avoiding some losses by pressing on
for that war, it is a method. Another way to trade is not the natural the platform "Robin hood" through which most of the trading
way, which is the short-selling method, And it is a way of trading took place on that share, but with the pressure of the masses on
strained on the calculated gambling and most of the beneficiaries of social networking sites, trading on that share was opened, but
them are the whales, but this time it didn’t go naturally. with restrictions.
The problem started with the onset of a global pandemic and a Evidence of the strength of this group is that at the height of the
pandemic COVID-19, where a company called a "GameStop" which is crisis a rumor spread (it is likely that its publisher had a
an American company specializing in video games and their relationship with a company Citadel) on their forum on the
accessories, and with the beginning of the pandemic, the company platform "Reddit". And what happened to the stock will also
began to lose because people were terrified of going to the streets and happen in the precious metals sector, in particular: silver, as "
stores and dealing with each other for fear of getting infected, and some " of the group's members interacted with it, and in less
therefore they preferred to deal with electronic stores because they are than a day the price of silver rose 15%, which is the highest
safer at that time. The company's sales began to decline and it was daily increase in the value of silver that occurred during the last
forced to close nearly 1,000 of its branches in the United States until it 10 years, this was a rumor and some members interacted, so
almost declared bankruptcy and giant investment funds such as what if the fact that the majority and interact with them?!
"Melvin Capital" And "Citadel " By sharpening their knives to Moving on to the last part, in early December 2019, the
slaughter that company in full view and hearing of everyone, but fate Egyptian Stock Exchange adopted the method of short selling
had another opinion, as some circumstances combined, such as the for trading in some sectors and some companies, so will this
issuance of the PlayStation 5 And a partnership contract with a decision be the spark that starts the war on the Egyptian Stock
company Microsoft And also the purchase of approximately 13% of Exchange between market giants and small traders?
the value of the company by 3 investors from the company "Chewy". Mr Mina Farid Shawqi, a financial and technical analyst and
All of this was enough to draw the attention of small investors in the " account manager at ”Ostool” stock trading company,
Wall Street Bets " group to what would happen if they mastered their answered: In the financial markets, the winning percentage of
game and took advantage of their size, which was about a million traders is only 20-30% depending on the type of market and its
people at a chance to take revenge for what happened in 2008 with conditions. Besides the control on the bodies of the markets
Volkswagen. Fate was already their ally. after these crises begins with the imposition of restrictions and
The war began, and the share price was close to $ 10, and during the rules and regulations of the market to avoid the recurrence of
war, the share price reached nearly $ 500 in a very short period of such crises in the Egyptian market, where the volume of
time, so that some economists around the world warned against liquidity in a very weak market to start trading using the
entering the stock for fear of a new bubble-like the 2008 bubble, the method of short selling as it needs a very large financing that
demand for stocks was (Whether locally or internationally) unseen the majority of traders in the Egyptian market cannot afford.
before, and many skirmishes have already occurred between the two Therefore, I think it is unlikely that what happened in
parties, and the international press described what is happening with GameStop gets repeated in the Egyptian market.
the massacre, as losses of investment funds reached, on top of them .

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