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GameStop stock explained: Here’s what short selling is and why it’s shaking up Wall Street

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www.fox29.com

LOS ANGELES - If you’re confused as to why GameStop is shaking up Wall Street, you’re not alone. Earlier this week, trading volume surged in shares of GameStop, AMC Entertainment, as well as Bed Bath & Beyond and BlackBerry, stunning Wall Street firms betting that the value of those stocks would fall.The surges came from small retail investors with trading accounts ranging from $500 to $2,500 banding together in an economic tug-of-war against major investment firms.

Companies like Citron Research and Melvin Capital had placed bets that GameStop shares would fall in a practice called short selling. What is short selling?It's how investors can make money off a stock falling.AdvertisementIn a short sale, they borrow a share of GameStop and.

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