WHAT IS MEME STOCK?

While we are aware about what a meme is, thanks to our social media presence, it is interesting to know that ‘meme stock’ is a concept which has developed as a result of these memes that we see on Facebook, Instagram, reddit, etc. Meme stock are the stocks/shares of the companies which has become meme material on social media i.e., stocks on which funny content is created and then made viral. subreddit WallStreetBets is the center of meme stock rallies. 

The concept was first introduced in 2020 during the peak lockdown year, during covid-19.

Meme stocks are not just for fun, anymore. The way meme stocks are displayed and promoted by the social media influences the market prices of these stocks on a serious level. GameStop was one of the first meme stock which got affected. As we are hugely influenced by social media nowadays, it is not surprising that more and more people take their financial decisions on the basis of the news and content about stocks on the social media. This gives a perfect opportunity to the social media influencers/creators to manipulate the market and speculate the share prices.

This shows that trading or investing in the stock market is as much a mental game as it is a technical game.

To know and understand all sentiments and technicalities relating to the stock market, head on  Stakeindia. It is the oldest stock market training institute in Nashik, Maharashtra having online as well as offline presence. Reach us at stakeindiainstitute@gmail.com to know more.