Beyond Meat: Dilution Is the Only Solution
Roughly 30 years ago, the arrival and proliferation of the internet altered the corporate landscape by opening new sales channels for businesses that hadn't previously existed. But the rise of the internet also paved the way for the retail investor revolution. It broke down information barriers that had previously existed between Wall Street and Main Street, and gave everyday investors the ability to buy and sell stocks online.
Over time, retail investors have come to play a larger role on Wall Street. As of 2021, everyday investors accounted for 25% of total equities trading volume, which is almost double where things stood one decade prior, according to a report from the University of Missouri-Kansas City School of Law.
While a sizable percentage of retail investors have come to realize that time is their ally, the short squeeze hype that occurred in early 2021 also ushered in the meme stock era. Instead of a company's operating performance dictating its valuation, social media hype (briefly) ruled the roost.
Source Fool.com
