Did Retail Investors Just Doom AMC Entertainment?
When the curtain closes on 2021 in just under eight months, I have little question that this year will be anointed the "Year of the Retail Investor."
Whether it's been cryptocurrencies or stocks with high levels of short interest, retail investors on social media platforms such as Reddit and Twitter have made their presence known and rocked the boat in a way that Wall Street has never before seen.
The most prominent way retail investors have exerted their influence in the market is by banding together to buy shares and out-of-the-money call options in companies with high short interest -- i.e., companies where a large percentage of shares are borrowed and held by pessimists who want to see the price of a stock decline. Given the right set of circumstances, high short interest can lead to a short squeeze, effectively sending a stock "to the moon."
Source Fool.com
