What was under the hood in the latest scheme to attract small investors to the US financial markets.
As people grapple with the coronavirus pandemic and its repercussions on their health and economic conditions, the world’s financial exchanges have been witnessing events that are not only telling of their divergence from the real economy but also their detachment from real life.
New phenomena in the global exchanges are forming from an amalgam of entities comprising free-of-charge digital platforms for trading in stocks, such as Robinhood, forums for exchanging information, striking pre-agreements on deals, and targeting specific financial operations, such as the widely used Reddit website used for communication between groups on selected topics. All these are empowered by easy money obtained by individuals from governments in the form of cash subsidies to counter the coronavirus fallout.
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