GameStop Stock Market Quiz

What is short selling in the context of the stock market?

• Buying shares at a low price and selling them at a high price.

• Borrowing shares to sell at the current price, hoping to buy them back cheaper.

• Investing in stocks that are expected to rise in value.

• Selling shares directly from the stock exchange.

What triggered the short squeeze of GameStop's stock?

• A decrease in video game sales.

• A large number of people buying shares to drive up the price.

• The release of a new video game.

• A decision by GameStop to close stores.

How did social media influence the GameStop stock event?

• It was used to spread misinformation about the stock.

• It helped organize a group to buy shares and drive up the price.

• It was irrelevant to the stock's performance.

• It promoted other competing stores.

What was the peak price range that GameStop's stock reached during the event?

• Around $100

• Around $20

• Around $500

• Around $1000

What was a significant reaction from brokerages during the GameStop event?

• They offered discounts on GameStop shares.

• They increased the price of GameStop shares.

• They temporarily restricted buying more GameStop stock.

• They bought back all the GameStop shares.

What was the primary reason many small investors participated in the GameStop stock event?

• To quickly become millionaires

• To challenge the control of big Wall Street firms over the market

• To test their luck in stock trading

• To learn about stock trading

What was a significant outcome of the GameStop stock event?

• It led to a permanent increase in GameStop's stock price

• It caused a decrease in online trading

• It sparked discussions about market regulations and social media's power

• It resulted in the bankruptcy of GameStop

According to the text, what is crucial to do before making investment decisions?

• Following popular trends on social media

• Consulting only with professional investors

• Doing thorough research and understanding the risks

• Investing only in well-known companies

What does the GameStop event highlight about the impact of community?

• Community actions can lead to quick financial gains

• Community influence can significantly impact financial markets

• Communities generally discourage stock investments

• Community involvement is irrelevant in financial decisions