NEW YORK: The US Securities and Exchange Commission on Monday released a report examining the frenzied trading in shares of retailer GameStop, and other 'meme' stocks, in January, and recommended some areas for further regulatory consideration.
The extreme volatility in GameStop shares, along with other popular meme stocks, prompted the clearinghouse that guarantees trades before they are completed to raise the collateral from brokers to clear the trades. Then, in early 2020, with COVID-19 lockdowns keeping people at home, major entertainment and sporting events canceled, and government stimulus checks sent to many US households, retail trading levels soared.
Anybody who bought GameStop shares at US$482.95 on Jan 28 and then sold them since would have lost money.WHAT HAS HAPPENED SINCE?- The SEC has asked for public comments on the effects of the"gamification" of trading apps and whether the public is at risk;