logo |

News

    Home   >     Industry    >     Main body

    GameStop Says It Is Subject of SEC Probe

    Abstract:GameStop is one of a handful of stocks that have been fueled by Reddit traders who invest based on social-media buzz.
    AAKSolH.jpg

      GameStop Corp. GME, +0.85% disclosed late Wednesday that the U.S. Securities and Exchange Commission has asked for its cooperation with an investigation into the unprecedented volatility its stock has seen in recent months. The company also suggested its not the only one being probed.

      “On May 26, 2021, we received a request from the Staff of the SEC for the voluntary production of documents and information concerning a SEC investigation into the trading activity in our securities and the securities of other companies,” GameStop disclosed in its 10-Q quarterly earnings filing.

      “This inquiry is not expected to adversely impact us,” the retailer said.

      Despite stronger sales in the fiscal first quarter, a smaller $66.8 million loss and GameStop announcing the long-anticipated naming of a new chief executive officer and chief financial officer, its stock fell by as much as 13% in after-hours trading, before recovering some ground.

      It wasnt alone. Shares of AMC Entertainment Holdings Inc. AMC, -10.37% fell as much as 8.3%, BlackBerry Ltd. BB, -4.05% 5.2%, Koss Corp KOSS, -7.09% 1.3%, and Nokia Corp. NOK, -1.61% 0.9% in extended trading following the news, with many investors already bracing for SEC commissioner Gensler to take a closer look at the meme stock phenomenon.

      The newly-appointed Wall Street top cop on Monday signaled that meme stocks were on his radar when the agency stated that “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.”

      While one of the SECs primary roles has been to protect retail investors, some investors gathered on social media platforms Wednesday afternoon sounded less than overjoyed by potentially more oversight of meme stocks.

      Several posts on Reddit boards even questioned if the SEC investigation might be concentrated on naked shorting of meme stock shares, which might mean more trouble for hedge funds and market makers. Others responded with skepticism. “Gary Gensler released statements about reviewing payment for order flow,” said TheIncredibleNurse on Reddit board Superstonk. “We heard them before but now seems [more] official. Maybe the SEC will do something [after all], eventually, once they close Pornhub.”

    1e3fd927654d608a64d98ff97e0340a6.png

      - END -

      Stay tuned for more global market news on WikiFX!

    宣传.jpg

    Latest News

    United Arab Emirates Dirham

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United Arab Emirates Dirham
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.