The United States securities regulators are engaging in the stock market's version of whack-a-mole -- racing to suspend shares of firms with dubious prospects that have been hyped to the moon on social media. In a statement, the US Securities and Exchange Commission said it suspended trading in the securities of 15 companies because of "questionable trading and social media activity," the latest in a string of temporary trading halts amid volatile trading in so-called "meme stocks." "We proactively monitor for suspicious trading activity tied to stock promotions on social media, and act quickly to stop that trading when appropriate to safeguard the public interest," Melissa Hodgman, acting director of the SEC's enforcement division, said in a statement. This is the regulator’s third and largest wave of suspensions in response to social media activity. Retail interest in certain stocks, most notably GameStop Corp, has surged in a social media frenzy, leading to volatile trading.

Source: Mint February 27, 2021 04:41 UTC