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The SEC took action against 23 companies for making false claims about COVID-19 - Business Insider

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The SEC took action against 23 companies for making false claims about COVID-19

A general exterior view of the U.S. Securities and Exchange Commission headquarters in Washington, June 24, 2011.The Securities and Exchange Commission has taken action against 23 companies for making false claims about coronavirus.

The federal agency said in a statement: "We have become aware of a number of Internet promotions, including on social media, claiming that the products or services of publicly traded companies can prevent, detect, or cure coronavirus, and that the stock of these companies will dramatically increase in value as a result."

The SEC can stop a stock from trading for up to 10 days if it believes information posted by a company is inaccurate. A halt prevents investors from selling their shares for at least the duration of the trading suspension. They face greater risk because there is usually limited public information about microcap companies' management, products, and services.

 

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donkos24 Why does the president get away with making false claims about covid19?

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