# Meme Stock

*Trading & Technical Analysis — Finicade finance glossary*

A meme stock rises on coordinated retail enthusiasm rather than on fundamentals, amplified by social media and option-driven dealer hedging. The 2021 episodes combined a small float, extreme short interest and mass call buying into moves of several thousand percent. Prices eventually reconnect with fundamentals, and the distribution of outcomes for participants is extremely skewed toward those who arrived first.

**Also known as:** meme stocks, retail frenzy

**Related terms:** [Short Squeeze](https://finicade.com/glossary/short-squeeze), [Gamma Squeeze](https://finicade.com/glossary/gamma-squeeze), [Short Interest](https://finicade.com/glossary/short-interest), [Herding](https://finicade.com/glossary/herding), [Free Float](https://finicade.com/glossary/free-float)

Source: https://finicade.com/glossary/meme-stock