So, the SEC (U.S. Securities and Exchange Commission) is cracking down hard on regular people buying and selling meme stocks.
They are accusing them of pumping and dumping and want fines and criminal prosecutions.
Who are the people who complained?
The rich billionaires including the NBA team owner and the celebrity CEO.
There are more, but that gives you a sense of how there will never be a level playing field.
Mark Cuban thanks Wall Street Bets for ‘changing the game’ after the Reddit forum fueled a meme-stock frenzy
In a Reddit AMA on Tuesday morning, billionaire investor Mark Cuban expressed gratitude to the members of the WallStreetBets Reddit forum.
“Thanks for changing the game,” he said. “Thanks for taking on Wall Street.”
In the past week, amateur traders on WallStreetBets have driven up the value of several stocks, including GameStop and AMC Theaters, that some hedge funds bet heavily against. The resulting short-squeeze caused trading restrictions on the popular trading app Robinhood and uproar on social media. The ongoing saga also sent shockwaves across the industry and drew scrutiny from lawmakers.
Though Cuban said that he does not own GameStop shares, his advice to those who do is to hold onto their shares if they can.
“If you can afford to hold the stock, you hold,” he said. “I don’t own it, but that’s what I would do. Why ? Because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work.” – Source
Regulators Warned Tesla Over Musk’s Twitter. This Stock Just Moved After a New Tweet.
According to documents obtained by the Journal, the Securities and Exchange Commission told Tesla in 2019 and 2020 that tweets from Musk about Tesla’s solar roof production volumes and the company’s stock price had not undergone the required preapproval by corporate lawyers. The communications from the SEC haven’t been previously reported. The SEC, Tesla and Musk didn’t respond to the Journal’s requests for comment.
“Tesla has abdicated the duties required of it,” a senior SEC official reportedly said in a letter to the electric-vehicle company.
Tesla and the SEC settled an enforcement action in 2018 over a tweet from Musk that saw both him and the company pay $20 million—and agree that his public statements on social media be overseen by Tesla’s lawyers.- Source
Regulators Probe Market Amid Rising Meme Stocks
Market swings and the surging prices of meme stocks have caught the attention of the U.S. Securities and Exchange Commission (SEC), Bloomberg reported on Monday (April 7). The SEC is doing a deep dive into the markets for evidence of manipulation and other improper behavior in light of escalating meme stocks like AMC and GameStop.
“SEC staff continues to monitor the market in light of the ongoing volatility in certain stocks to determine if there have been any disruptions of the market, manipulative trading or other misconduct,” the agency said, per Bloomberg. “In addition, we will act to protect retail investors if violations of federal securities laws are found.”
The SEC has already begun a probe into GameStop’s January rally, and is examining message boards to see whether traders used that route to encourage other investors to buy in, Bloomberg reported.
After two days of declines, AMC’s stock on Monday (June 7) started climbing again despite its lack of a sound financial foundation. Regulators are worried that investors could suffer steep losses if the stocks plunge, according to the report. – Source
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