SEC Says It’s Scrutinizing Market Swings as Meme Stocks Surge
SEC Says It’s Scrutinizing Market Swings as Meme Stocks Surge
(Bloomberg) -- The U.S. Securities and Exchange Commission said it’s scrutinizing markets for signs of manipulation and other misconduct as AMC Entertainment Holdings Inc. and other meme stocks continue to surge.
“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 said in a Monday emailed statement. “In addition, we will act to protect retail investors if violations of federal securities laws are found.”
AMC resumed its upward trajectory Monday, halting two straight days of declines. The stock -- like GameStop Corp. before it -- has become a darling of retail traders. The movie-theater chain’s wild rise comes despite questionable fundamentals, prompting concerns among regulators that investors could be sitting on substantial losses if the stock plunges.
The SEC has already said it’s investigating what happened with GameStop in January, with a focus on whether traders were using online message boards to dupe other investors into buying into the rally.
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