While many investors think of any stock made popular by social media as a “meme stock,” Dan Raju says we need to be cautious about labeling a particular stock that has a substantial price fluctuation as such. Raju says meme stock behaviors were driven by an increase in retail trading after 2019 and the growing adoption of options trading by new retail investors. Here Raju discusses risks of investing in these types of companies amid economic headwinds.
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