Shi Li,
Meme Stocks

Meme Stocks

Principal Investigator: Shi Li, Finance
Funder: SSHRC Explore

The goal of this research is to examine how “meme stocks” – a group of stocks whose prices soar dramatically within a short time driven by their going viral on social media – evolve and their implications for the market and policymakers. Despite their eye-catching performance and popularity in the financial press, little research has been done on the evolution of these stocks. Specifically, Dr. Li will first compare these stocks with lottery-like stocks and examine whether meme stocks should be classified as lottery-like stocks now or in the past. Dr. Li will then examine the differences between meme stocks and lottery-like stocks in detail and plans to investigate the relation between the meme stock phenomenon and the macroeconomic environment, such as the current flexible monetary policy and work-from-home policy. Lastly, the implication of the meme stock phenomenon for regulators and practitioners will be explored.