The U.S. Parliament's House of Representatives announced that it will hold a hearing on the 18th of this month, saying that hedge funds that manage large amounts of money may have been given preferential treatment to individual investors over the volatility of stock prices of game-related retailers. The financial industry, which is profitable in the stock market, is likely to be hit harder.
This problem is caused by the operating company of the stock trading app, which is often used by individuals, temporarily restricting transactions while the stock price of "GameStop", which sells game software, continues to rise sharply. It gives preferential treatment to the fund, and individual investors have suffered damage. "
In response, the Financial Services Commission of the House of Representatives announced on the 1st that it will hold a public hearing on the 18th of this month, and announced that it will launch a full-scale investigation.
"Hedge funds have a long history of looting, and we must stop doing things that hurt other investors," Democratic Chairman Waters said in a statement.
Hedge funds have been criticized for making huge profits by a method called "short selling" that anticipates a drop in prices, but this time, as a result of individual investors continuing to buy orders, the stock price has risen. Due to the surge, American media reported that "individuals have defeated Wall Street."