Here's how companies like Kohl's and Krispy Kreme got caught in the meme stock frenzy

Reminiscent of the GameStop and AMC rallies of 2021, stocks like Kohl's, GoPro and Krispy Kreme saw volatile trading in late July. It's the latest class of meme stocks, which are companies that experience sharp swings in their share prices that are not based on their underlying fundamentals. Meme stocks are typically cheap. Kohl's share price, for example, is down around 40% over the past year. When shorting a stock, investors borrow shares from a broker and sell them on the open market. The investor is hop ...