Episode 10: Today's news in English will look at how Wall Street was brought to its knees by people like you and me on Reddit. This is the story of the GameStop Stock (GME) war. You can find a full transcript of this podcast episode here.
Thanks for listening, and I will see you soon for more news in English!
Hello my beautiful students and welcome back to English News Pod, the best way for you to learn practical English through the news. I’m your host and teacher, Caroline.
I’m so happy to be back podcasting and so much has changed in the past few months. I moved back to the US from Turkey, I started a new job, and I started new hobbies, like running. Anyways, I hope you’re having a great 2021 and thanks for listening!
Now, let’s take a look at today’s top news. You can find a full transcript of this podcast episode in the description.
Earlier this week, the little people of Reddit crashed Wall Street. How, you might ask? Redditers noticed GameStop, a failing video game store in the US, had a stock that was overly ‘shorted’ by large hedge funds. When a stock is shorted, it means that investors borrow shares only to sell them immediately, in hopes to buy the shares back later at a lower price. Investors typically short stocks that are expected to decrease, so the investor makes a profit. In this case, GameStop was expected to have its stock continue to decrease because it is a failing company.
However, ordinary people noticed the extent of the short, banded together on Reddit against large hedge funds, and started to buy large amounts of GameStop shares. The impact has been incredible, with small-time traders outsmarting Wall Street and earning billions of dollars, resulting in the hedge funds losing billions of dollars.
For reference, GameStock’s share cost was $4 last year, but due to day traders’ interest in the stock, it rocketed to over $450 per share in just over one day. There has been a lot of fallout from this event, including questions about regulation and power, especially after the popular trading app, Robinhood, stopped allowing the stock to be traded. However, it is still too soon to tell what will happen next in this story.
Let’s take a look at some grammar:
That wraps us up for today. If you liked this podcast, please subscribe and leave a review. Thanks for listening, and I will see you soon for more news in English!