SEC to Punish ‘Abusive Activity’ in the Midst of Gamestop, Robinhood Saga

SEC Gamestop Robinhood

The Securities and Exchange Commission (SEC) said in a Jan. 29 statement that it is "closely monitoring the extreme price volatility of certain stocks trading prices" in recent days. SEC said that it stands ready to take aggressive enforcement action if market manipulation is found to have taken place.

The statement came amid significant public interest in a handful of stocks that were the target of professional short-selling investors who have bet that those particular companies would fail. These stocks most notably include Gamestop Corp. (GME), AMC Entertainment Holdings Inc. (AMC), and Nokia Corp. (NOK).

The SEC statement also specified that it believes the "core market infrastructure" remains intact despite the heavy trading volumes of the week prior. The r/wallstreetbets subred...

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