Reuter reports that “regulators may investigate GameStop’s Reddit-driven retail shares.” In other words, the wrong people made money.
The U.S. Securities and Exchange Commission said in a statement Wednesday that the agency is actively monitoring market volatility without providing details. The Southern District of New York, which may have jurisdiction over a criminal case, declined to comment.
Game fluctuations in GameStop’s shares have led the New York Stock Exchange (NYSE) to strike several times in the company this week. But lawyers have said there is enough confusion in the market to justify a longer suspension.
Massachusetts state regulator William Galvin on Wednesday called on the NYSE to suspend GameStop for 30 days to allow for a cooling-off period. “It’s not investing, it’s gambling,” he told Reuters in an interview. “It was, of course, conceived.”
[Image by Dwight Burdette – Own work, CC BY 3.0]