Recently a very small stock in the US made headlines in the investment community. Gamestop is a bricks and mortar retailer in the US, selling games and accessories for The PlayStation and Xbox. Despite being a dying business, in the space of 2 weeks in January, this stock rose from a little over $19.00 a share to over $145 a share. That's a 660% gain. By the time you are listening to this episode, who knows where it will be at.

 

One of the reasons for this growth is a phenomenon known as short covering. To make sense if this fascinating story, we need to have a good understanding of what short selling is and how it works. So let's bring you up to speed.

 

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