Why are stocks of failing companies rallying on Wall Street?

The hottest investment in the United States right now is a failing chain of shops selling video games.

GameStop shares have soared 1,700 percent since December.

A Reddit chat group of amateur traders banded together to buy the company’s stock when they realised hedge funds were betting on the shares falling, in a practice called short selling.

Online platforms such as Robinhood have now restricted trade on the stock, prompting anger from investors and politicians.

So who will win this battle between armchair traders and the Wolves of Wall Street?

Presenter: Mohammed Jamjoom

Guests:

Naeem Aslam – AVA Trade Chief Markets Analyst

Josh Young – co-founder, Bison Interests

Ash Sarkar – contributing editor, Novara Media