Meme Stocks Definition
MEME stocks are a recent addition to the stock market, and, as such, there is no solid definition for them. But not all MEME stocks will be. Generally speaking, MEME stocks can make a lot of money. A meme stock is a share of a company that quickly jumps in price due to the attention of a dedicated online following. For this reason, these stocks often become overvalued, seeing drastic price increases in just a short amount of time. The concept of a meme stock is a new one, and there's no single definition or official designation. Instead, a meme stock label is a part of the language of the Internet. A meme stock is a stock that has seen an increase in volume not because of how well the company performs, but rather because of hype on social media and online forums like Reddit. Meme stocks usually gain popularity through discussion. A meme stock's value is a result of its hype on social media and not necessarily the company's performance.
Along with cryptocurrencies, it's the most controversial topic within the industry at the moment. It's a fun word to say, with an element of comic noise similar to what is heard in interjections like honk and zonk , as well as chonky , an altered adjective that has taken hold to describe our lovably plump pets. Meme stocks are transforming the market thanks to Reddit traders. From these stocks has come the rise in meme investing. Meme stock impact is unlikely to be incorporated into textbooks soon, but to ignore it could prove very costly. Meme stock communities can thus greatly influence the prices of those shares through coordinated efforts to, for example, initiate short squeezes in heavily shorted names. MEME stocks are a recent addition to the stock market, and, as such, there is no solid definition for them. So, what are meme stocks exactly? A unit of cultural information, such as a cultural practice or idea, that is transmitted verbally or by repeated action from one mind to another. There is a cult following and others blindly following the suggestion to the point they actually buy said meme stock.