Grades 9-12
GameStop Trial by Jury
Objective
Students will be able to:
- analyze the effects of short-trading in the GameStop Short Squeeze event.
- debate on the innocence or guilt of people/groups who were part of the GameStop Short Squeeze event.
Standard
Standard: 9
- Students will understand that: Competition among sellers usually lowers costs and prices, and encourages producers to produce what consumers are willing and able to buy. Competition among buyers increases prices and allocates goods and services to those people who are willing and able to pay the most for them.
- Students will be able to use this knowledge to: Explain how changes in the level of competition in different markets can affect price and output levels.
Standard: 2
- Students will understand that: Effective decision making requires comparing the additional costs of alternatives with the additional benefits. Many choices involve doing a little more or a little less of something: few choices "are all or nothing" decisions.
- Students will be able to use this knowledge to: Make effective decisions as consumers, producers, savers, investors, and citizens.
In this economics activity, students will have a discussion/debate about GameStop Short Squeeze.
Resources
Procedure
This activity is discussion-based where 4-5 students will be placed in groups or virtual rooms. You, as the teacher, will select one of the 3 discussion prompts and provide the resources below:
- Wallstreetbets: Is Wallstreetbets guilty of manipulating the stock market?
YouTube Video: Illegal Trading on GameStop or WallStreetBets: The Stonkening?
Article: Will Wallstreetbets Face SEC Scrutiny?
- Investment firms: All investment firms tried to push the stock down with short-selling. Should they be guilty of manipulating the stock market?
Article: SEC Hunts For Fraud In Social Media Posts Targeting Gamestop
Article: SEC Looking For Fraud In Gamestop Surge
- Robinhood: Is Robinhood guilty of damages because their actions were unfair and unlawful?
Article: Investigations Into GameStop Trading And Reddit
Video: GameStop Hearing: Live Updates
Prompt your students with the following scenario:
“You are a jury. This person/group is accused of a crime. Your group has to decide whether or not they are innocent or guilty. As a group, you will review the resources I will provide you. You must record the evidence in arguable sides on a paper or doc. Discuss your notes with your group. The consensus must be unanimous. You must submit a copy of your group’s case notes.”
Related Resources
Grades 9-12
Does Self-Interest Prevent Economic Justice?
Grades 9-12