💨 Abstract

Meme stocks are shares of financially struggling companies that gain sudden, significant, but often temporary, increases in value. Characteristics include poor financials, cheap prices, and high short-selling interest. Online buzz, often driven by forums like Reddit or YouTube, can trigger a "short squeeze," driving up the stock price rapidly but unpredictably. Examples include GameStop and AMC Entertainment. Investors should be cautious as gains can vanish quickly.

Courtesy: WTOP Staff