CURRENT AFFAIRS

Detailed explanation-1: -GameStop Corp. (GME) is a brick‐and‐mortar retail video game vendor chain that had its initial public offering in early 2002. By 2021 it was a troubled firm, with steadily falling share prices. It had been closing stores for some time, and the pandemic accelerated its sales decline.

Detailed explanation-2: -The cause of this dramatic increase is a concerted effort via social media to raise the value of the company’s stock, intended to negatively affect professional investors planning to ‘short sell’ GameStop shares.

Detailed explanation-3: -As a result, GameStop’s stock price declined, leading many institutional investors to short sell the stock. On January 22, 2021, approximately 140 percent of GameStop’s public float had been sold short, meaning some shorted shares had been re-lent and shorted again.

Detailed explanation-4: -GameStop shuts down physical locations To improve profit margins, the company closed down several physical locations. GameStop was able to control some of the losses by dropping the brick-and-mortar location count from 7, 276 at the end of the fiscal year 2017 to 4, 573 stores at the end of fiscal year 2021.