Date of Award
Spring 2024
Degree Type
Thesis
Department
Moore School of Business
Director of Thesis
Ozgur Ince
First Reader
Hugh Kim
Second Reader
Hugh Kim
Abstract
This thesis explores the rise of retail investors in the wake of the COVID-19 pandemic, and how they have changed the landscape of financial markets. We outline the full timeline of the GME and AMC social media craze that exemplified the power of retail investors in the market and investigate the impact the COVID-19 pandemic had on this group. Through the use of VandaTrack, a software that tracks retail investors’ trading activity, we were able to quantify the impact that retail investors have on US equities and ETFs and compare them to the market as a whole. We utilized this data to visualize retail trading flows and how they interact and influence the price of a stock or ETF over time. In addition, this data allowed for a better analysis of how retail investors react to certain events in the equity market including IPOs and stock splits. This thesis asserts that institutional investors must continue to adapt to the new age of retail investors and consider the power and influence that they hold. Additionally, this thesis asserts that the presence of the retail investor is better for the stock market because these retail investing flows provide increased liquidity and reduce the tail risk of stocks.
First Page
1
Last Page
67
Recommended Citation
Murray, Nick and Brosnan, Spencer, "Meme Stocks, Robinhood, and Wall Street: Retail Investors and Changing Market Dynamics" (2024). Senior Theses. 698.
https://scholarcommons.sc.edu/senior_theses/698
Rights
© 2024, Nick Murray and Spencer Brosnan
Included in
Business Analytics Commons, Business Intelligence Commons, Corporate Finance Commons, Finance and Financial Management Commons