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GameStop for non-finance: it is simpler than it sounds
8 min readFeb 4, 2021
A 101 on what happened to the markets last week — in plain English.
Ps. You do not need to know a thing about finance to understand this.
To be honest, at first I thought I easily understood it, then the more I read, the more I realized how many layers there are to this. So I am going to try and break it down to the simplest ones.
My one promise to you: you do not need a background in anything to do with business to read [and understand!] this.
And, in case you do know some concepts and want to skip to the juicier parts, here is an index;
- What are publicly-listed shares?
- How is a share price determined?
- What is a market maker?
- What is a broker?
- Just tell me already, what happened to GameStop shares?
- Wait, where does Robinhood come in? i.e. where the system failed…
- And…who the heck is Citadel?
- Now what, do we just go on like nothing happened?
What are publicly-listed shares?
Companies need money to survive.
The owners or founders usually start with their own money, they borrow some from family and…
