How to Buy GME Stock- Are you interested in investing in the stock market? If so, GameStop (GME) stock may have caught your attention. GME has been one of the most talked-about stocks in recent years due to its volatile price fluctuations and unexpected market performance. If you’re looking to buy GME stock, this comprehensive guide will walk you through the process step by step.
1. What is GameStop (GME) Stock?
GameStop is a retail chain that sells video games, consoles, and accessories. The company was founded in 1984 and has since grown to become a global retailer with over 5,000 stores worldwide. GME stock is the publicly traded stock of GameStop Corporation and is listed on the New York Stock Exchange (NYSE).
2. Understanding the Stock Market
Stock Market Basics
Before investing in any stock, it’s important to understand the basics of the stock market. The stock market is where companies go to raise capital by selling shares of their company to investors. Investors buy shares of a company’s stock in the hope that the company will perform well and the stock price will increase, allowing them to sell their shares for a profit.
Types of Stock
There are two main types of stock: common stock and preferred stock. Common stock represents ownership in a company and gives the shareholder the right to vote on certain company decisions. Preferred stock, on the other hand, usually does not come with voting rights but provides shareholders with a higher claim on the company’s assets and earnings.
3. Why Buy GME Stock?
Recent GME Stock Performance
GME stock has been in the news recently due to its volatile price fluctuations. In January 2021, the stock price surged from around $20 per share to over $400 per share in a matter of weeks, before eventually falling back down. While the stock price has since stabilized, GME remains one of the most talked-about stocks in the market.
One reason for GME’s sudden price surge was a short squeeze. Short selling is when an investor borrows shares of a stock and sells them, hoping to buy them back at a lower price and pocket the difference. A short squeeze occurs when the stock price rises sharply, forcing short sellers to buy back the shares they borrowed at a loss, which can lead to even higher stock prices.
Online Communities and Social Media Impact
GME’s price surge was also heavily influenced by online communities and social media. Online forums like Reddit’s WallStreetBets played a significant role in driving up the stock price by encouraging individual investors to buy and hold GME stock.
4. Risks and Considerations
GME stock is notoriously volatile and subject to sudden price fluctuations. While this can be exciting for investors looking to make a quick profit, it can also be risky for those looking to hold onto their investments long-term.