In case you missed the news, GameStop (NYSE: GME) turned into one of the hottest stocks in the US market this week. The company added $ 23 billion to its market value in just 10 trading days, with the stock price briefly jumping nearly $ 500 after gaining 1640%.
However, the retailer’s share price hasn’t risen just because traders are making a big bet that it will generate a huge profit due to recent video game console releases. The stock’s meteoric rise is largely due to traders on a Reddit board (r / wallstreetbets) executing a short press.
See, Redditors rushed to buy shares in the company and then restricted the ability of short sellers to buy them. Short sellers (mostly hedge funds) made big bets on the fall in GameStop’s stock price, and around 55 million shares were sold short. But with Redditors starting a buying frenzy, the share price rose instead – dramatically. And short sellers are now scrambling to hedge their short sales (meaning they have to buy the stock), so the stock price is even higher.
While this may all sound technical, the bottom line is that hedge funds and other Wall Street insiders shed their shirts while some retail investors made very generous profits (on paper, at least). The problem is that many popular trading platforms, including Robinhood, Interactive Brokers, TD Ameritrade, and Charles Schwab, have started banning trading of GameStop stocks or placing new restrictions on their trading.
This leaves traders on the lookout for other brokerages, and many are wondering if you can buy GameStop through Webull.
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So, can you buy GameStop through Webull?
There is good news. You can buy GameStop via Webull (at least for now).
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While Webull briefly joined the growing list of brokers who halted trading in GameStop shares on Thursday due to “extreme symbol volatility,” the company changed course on Thursday afternoon, Tweeter “UPDATE: GME, AMC and KOSS are no longer restricted.”
The bad news, however, is that if you don’t have a Webull account yet, you’ll need to sign up for one to purchase GameStop (or any other action). To do this, you will need to upload a photo of your ID and provide your Social Security number and other financial information. Webull will also verify your information before you can open an account, which will take one to two days.
It’s unclear exactly what will happen to the GameStop share price after two days. Ultimately, the current inflated retailer share price is not justified by fundamentals. Stocks can start to fall at any time, so betting big on GameStop is a high risk strategy. And this is true whether you invest today or within two days of your Webull account being approved.
So while you can buying GameStop shares through Webull, you should give some serious thought to whether you really want to bet your money on a Reddit caper that has proven to be spectacularly good for those who run it. At some point, stock prices will inevitably go down and the fun will be over – and you don’t want to hold onto them when that happens.