They helped me a lot even on just basic definitions.” You have people having these conversations and you can see stuff explained. “There’s a lot of really smart people on there, and there’s also a lot of ‘trolls,’ which makes it a great source of information. “My financial literacy two years ago was basically nothing,” he told CQ Roll Call. Woodhull, 30, credits it with providing a free financial education. Michael Woodhull, a bartender in New Orleans, said he started following the WallStreetBets subreddit late last year. Retail investors who bought near the top have been hit hard. After the dust settled, the price fell to around $50, where it has been for much of February. When the price rose instead, those funds were forced to buy more shares, which helped push the price to more than $400 a share from about $20 at the beginning of the month. Retail investors coordinating on WallStreetBets bought up shares of GameStop, a brick-and-mortar retail chain last month, at least in part to target hedge funds that had aggressively gone short, a practice in which they bet that a stock’s price will fall. SEC spokesman Ryan White declined to comment. The role of social media platforms, though, has drawn little attention. The Securities and Exchange Commission is examining posts on the Reddit forum for signs of fraud and corresponding trade data that could show an attempt to manipulate GameStop’s share price, Bloomberg News reported on Feb. Several lawmakers have already sided with the retail investors in public remarks. The list of witnesses for the hearing hasn’t yet been released. The House Financial Services Committee is scheduled to hold a hearing Thursday to investigate the volatile trading of GameStop, and the role hedge funds and online brokerage apps played. Now, the role that forums like Reddit’s WallStreetBets played as rallying points to boost stocks has the attention of regulators as they investigate the trading frenzy in shares like those of GameStop Corp. Coupled with new trading technology, social platforms are giving ordinary investors a way to battle with Wall Street insiders. New investors moved to the stock market in droves last year, many pressured on social media platforms where others were crowing about winning big.
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