In The New York Times, Craig Marcus Examines How Certain Winners are Cashing in on ‘Meme Stock’ Mania
Among the winners in the social media fueled ‘meme-stock’ frenzy is the Koss family. The Nasdaq-listed headphone maker was swept up in the recent market frenzy, pushing the company’s share price up by nearly 2,000 percent in a matter of days.
Koss, like other so-called meme stocks, was singled out by traders because it had attracted a lot of interest from short-sellers, which the buyers hoped to squeeze by bidding up the company’s shares. Koss insiders sold some $44 million in stock, an amount worth more than the company’s entire market cap before crowds of retail traders sent its shares soaring.
In a New York Times article, capital markets partner and co-chair Craig Marcus (Boston) explained that as the stock goes up in price, whether it makes sense or not, the people on the end of the short sale suffer, and the people who hold the stock and have the opportunity to sell it can benefit from it.