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Who Buys Meme Stocks?
In summary, people base their investment decisions on various factors, including what they believe the future value of a company will be. Meme stocks are a relatively new concept and are popular with younger investors. Demand for meme stocks seems to be driven in part by factors beyond new information about a company’s performance or general market conditions, such as social media interest in the stock. Social media provided a platform for investors to discuss their investments, and more people have been able to invest due to the introduction of low-fee and no-fee mobile trading apps and other financial technology innovations. This has allowed more individual and younger investors to enter the market, and some of these new investors are showing interest in meme stocks.
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