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

Tony Klein

Finance Research Letters, 2022, vol. 46, issue PA

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.

Keywords: Financial literacy; Short squeeze; GameStop; Reddit; Meme stocks (search for similar items in EconPapers)
JEL-codes: G11 G14 G41 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:46:y:2022:i:pa:s1544612321002890

DOI: 10.1016/j.frl.2021.102229

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