A Review of Fintech Brokerage, Social Media, and Concerted Retail Trading

DOI: https://doi.org/10.62517/jnme.202410217

Author(s)

Haoyu Jiang*

Affiliation(s)

School of Public Administration, Chongqing Technology and Business University, Chongqing, China *Corresponding Author.

Abstract

Recent advancements in financial technology (fintech) brokerage and social media have significantly transformed the landscape for retail investors, as exemplified by the GameStop short squeeze event. This phenomenon highlighted how the combination of low or zero transaction costs and widespread information sharing on social media platforms can empower individual investors to collectively challenge established market players like short sellers. This paper delves into the study of how fintech brokerage services, social media engagement, and coordinated actions by retail investors interplay to reshape the trading environment. By examining relevant literature, the study aims to shed light on the nuanced effects of technological advancements on the trading dynamics of retail investors. In further discusses, three critical implications touch upon the need for further empirical research in areas such as market efficiency, the roles of market participants, conflicts between profits and responsibilities (for security service providers and social media), regulation adjustments, and information transparency. This exploration contributes to a deeper understanding of the evolving market landscape influenced by technological progress and different market players.

Keywords

Fintech Brokerage; Social Media; Concerted Retail Trading; Short Selling; Information Exchange

References

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