Analysis: GameStop's 'Reddit rally' puts scrutiny on social media forums


FILE PHOTO: Reddit mascots are displayed at the company's headquarters in San Francisco, California April 15, 2014. REUTERS/Robert Galbraith

OAKLAND, Calif. (Reuters) - Social media services including Facebook Inc and Reddit restrict discussions about weapons, drugs and other illegal activity, but their rules do not specifically mention another lucrative regulated good: stocks.

Some people think they should. Users of a Reddit group, in which 5 million members exchange investment ideas, generated significant profits by gorging on shares of GameStop Corp and other out-of-favor companies that had been shorted by big hedge funds.

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