The SEC has investigated so called “meme stocks,” such as GameStop’s epic run, ultimately deciding there was no wrongdoing.
GameStop made headlines early this year when its stock skyrocketed. The frenzy was driven by investors on Reddit pumping the stock. AMC, Blackberry and Bed Bath & Beyond also saw their stocks driven up, thanks to individual stock traders. The phenomenon cost Wall Street who had shorted the stocks billions of dollars.
The SEC investigation, however, has proven the buying frenzy was driven by individual investors, meaning there was nothing illegal about the trend…no matter how strange it may have been.
“January’s events gave us an opportunity to consider how we can further our efforts to make the equity markets as fair, orderly, and efficient as possible,” said SEC Chair Gary Gensler. “Making markets work for everyday investors gets to the heart of the SEC’s mission. I would like to thank the staff for bringing their expertise to this important report, and for their ongoing work on to address the issues that January’s events raised.”