A Note on GameStop, Short Squeezes, and Autodidactic Herding: An Evolution in Financial Literacy?
12 Pages Posted: 14 May 2021 Last revised: 15 Jun 2021
Date Written: May 13, 2021
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
JEL Classification: G11, G14, G41
Suggested Citation: Suggested Citation