US securities regulators reported that about 900,000 personal accounts traded GameStop shares in a single day after a 90-fold increase in the height of the “meme stock” boom.
GameStop, a struggling video game retailer, became a symbol of market enthusiasts in January when its share surged 2,700% in less than three weeks. Individual traders were organized on online bulletin boards to unleash a ferocious rally on a particular stock.
The US Securities and Exchange Commission investigated the event and released a report on Monday that provided the first glimpse of the true magnitude of the phenomenon.for GameStop, The number of personal accounts trading that stock has increased from about 10,000 per day at the beginning of the year to about 900,000 at its peak on January 27.
“This was a real enthusiast,” said Steve Sosnick, chief strategist at retail trading platform Interactive Brokers, in response to a report from the SEC. “I’ve never seen such numbers in individual stocks in the height of the dot-com bubble. In that context, this is” awesome. ” “
GameStop and other trader volumes Meme stock Emphasizing both the elasticity of the broker and the capital store, it was forced to temporarily suspend trading of some stocks. Robin Hood, a retail broker, Raised $ 2.4 billion With urgent cash to support its finances during the turmoil.
An analyst at a major research firm said, “It’s a 90-fold surge. We don’t see that number.” “It took its own life and got more publicity as it went up. Every day I heard about twice and three times GameStop.”
The increase in the number of accounts that buy and sell GameStop shares daily has closely tracked the tremendous surge in stock valuations.
From January 12th to January 13th, the number of personal accounts trading GameStop increased from 9,220 to 60,515, a six-fold increase, according to a SEC analysis of integrated audit trail data. GameStop prices soared 2,700% from January 8th to January 27th, reached a daytime high of $ 483 on January 28th, and then fell 86% until the end of the first week of February. ..
According to the SEC, on January 28, the number of personal accounts trading GameStop also fell by more than 250,000 from a peak of nearly 900,000 the day before.
The SEC made no specific recommendations on how exposure from GameStop trading events would affect market regulation, but said it continued to provide an opportunity to “reflect the market structure and regulatory framework.” rice field.
GameStop trading volume also increased by 1400% per day from the 2020 level between January 13th and 29th to over 100 million shares. Shares closed on Monday at $ 186.02, up 1.5%.
The availability of options trading to retail investors has helped boost the surge. By mid-January, 91% of non-market maker options came from retail investors, and two-thirds of private investor options came from brokers Robinhood, ETrade, according to the SEC. It was from TD Ameritrade.
Nearly 900,000 accounts traded GameStop at the peak of the meme stock boom
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