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.
“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.
