With the extraordinary events of last week surrounding just a handful of stocks, we thought it may be helpful to discuss the difference between entering a "Long" vs. a "Short" position in a stock and the potential risks/rewards associated with those positions. Mike goes into more detail about how a company like GameStop Corp (GME) can go from $16/share all the way up to $483/share in a matter of days in a concept called "The Short Squeeze". As well as the ripple effects of forced liquidation across the broader market when investors receive a margin call.
Authored by: Michael McCracken CFP®, ChFC and Jeffrey Gardner, Financial Advisor The information presented above has been prepared for informational purposes only and the commentary represent the opinions of the author and are subject to change at any time due to market or economic conditions or other factors.