Why some US investors are pulling meme stocks from brokerages

Losing its shine: Customers enter a GameStop store in San Rafael, California. Monthly average trading volumes of GameStop shares have dropped since July to their lowest levels for more than a year. — AFP

JOSE Castillo pulled his US$60,000 (RM251,907) worth of GameStop Corp shares from his brokerage last summer, even though he had no intention of selling them.

The 26-year-old information technology worker, who lives in the greater Minneapolis area, is among a growing number of investors in “meme” stocks – shares such as GameStop popular with day traders – who are withdrawing them from brokerages out of concern the shares will be lent to hedge funds engaging in short-selling.