A PYMNTS Company

Regulators Probe Market Amid Rising Meme Stocks

By  |  June 7, 2021

Market swings and the surging prices of meme stocks have caught the attention of the US Securities and Exchange Commission (SEC), Bloomberg reported on Monday, April 7. The SEC is doing a deep dive into the markets for evidence of manipulation and other improper behavior in light of escalating meme stocks like AMC and GameStop.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    “SEC staff continues to monitor the market in light of the ongoing volatility in certain stocks to determine if there have been any disruptions of the market, manipulative trading or other misconduct,” the agency stated, per Bloomberg. “In addition, we will act to protect retail investors if violations of federal securities laws are found.”

    The SEC has already begun a probe into GameStop’s January rally, and is examining message boards to see whether traders used that route to encourage other investors to buy in, Bloomberg reported.

    After two days of declines, AMC’s stock on Monday, June 7, started climbing again despite its lack of a sound financial foundation. Regulators are worried that investors could suffer steep losses if the stocks plunge, according to the report.

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.