A meme stock is a stock that gains popularity among retail investors through social media, often due to heightened social sentiment and activity online. These stocks are usually heavily discussed on community forum sites such as Reddit and social media platforms, and they can maintain elevated stock prices regardless of the underlying companys worth. Meme stocks are actual stocks listed on exchanges and available for trade. Some of the key features of meme stocks include:

• Viral popularity: Meme stocks refer to the shares of a company that have gained viral popularity due to heightened social sentiment.

• Online communities: Meme stocks are shares of companies around which online communities have formed to promote and build narratives.

• Short interest: One of the features of meme stocks, especially early on, has been that they tend to be heavily shorted names.

• Risk: Meme stocks are generally considered to be very risky since they rely on high interest from small investors to sustain the stock prices liftoff.

Examples of meme stocks include GameStop (GME), Bed Bath & Beyond (BBBY), and AMC Entertainment (AMC) . The distinction between a meme stock and a non-meme stock is not always clear, and some professional analysts do not consider certain stocks to be overpriced despite being frequently discussed by amateur retail traders on social media. While it is possible to make money with meme stocks, it is an extremely risky market-timing venture.