PostedAugust 20, 2022, 4:36 PM
United StatesA student pockets 110 million dollars in a month
Buying stocks at lows and selling them at highs, a 20-year-old math and economics student has made more than $100 million on the stock market.
Jake Freeman, 20, became a multi-millionaire overnight, selling a stake in struggling retailer Bed Bath & Beyond.
Jake Freeman, a young student in mathematics and economics at the University of Southern California, was able to acquire in July for nearly 5 million shares of the company Bed Bath & Beyond then in difficulty. At the time, the stock price was $5.50.
Last Tuesday, the group’s share price rose to more than 27 dollars a share. Freeman then sold his shares, pocketing the tidy sum of 110 million dollars, reveals the “Financial Times”, relayed by “The echoes”. Two days later, the title tumbled, losing 20% of its value, when one of the main shareholders announced that it was selling its entire stake.
Although the market was favorable to Jake Freeman, the latter therefore had a thin nose by selling at that time. And many will not have the same luck as him and risk losing a lot of money.
Financial support from relatives
To have a sufficient down payment, the American student had sought the help of his relatives, in particular his uncle, a former pharmaceutical executive. “I didn’t expect such a rapid increase,” Freeman told the Financial Times. “I thought it would take within six months.”
The American is no beginner in the world of finance. In particular, he had done an internship in a hedge fund in New Jersey and, before he was 17, he had published an article with Vivek Kapoor, a former member of Credit Suisse, on the use of the default swap, a financial technique risk (“Irreducible Risks of Hedging a Security with a Default Swap”).
After this sudden and unexpected success, Jake Freeman soberly celebrated this gain by having dinner at the restaurant with his parents and then joining the benches of his university.
(vya)
