Why Capital Always Win — A Case Study for Gamestop

Abstract

A stock market bubble is an economic bubble that occurs in the stock market when market participants push stock prices above their value in some systematic stock valuations. Financial professionals and academics have long been puzzled by the ubiquity and repetition of market bubbles and crashes. In real life, it is common to see mistakes in the reasonable pricing of assets traded in the stock market. This paper aims to explain the behaviors of the stock market by taking GameStop's dramatic stock price change in early 2021 as an example. Firstly, the paper reviews the development history of GameStop and its weaknesses of the time. Secondly, this article focuses on the stock market institutions and retail, the game between the use of the relevant theories of game theory and related data model. Then the article reviewed the why retail investors in the short-term game victory, the victory of the retail is the media, government. Finally, the reasons for the different stock markets under different social forms are discussed. In the current era of economic globalization, changes in the US stock market will lead to changes in the global economy. Taking the 2008 financial crisis as an example, it is very important for the national economy to understand the causes of market changes and stop losses in time.