Meme inventory favorite GameStop says it’s topic of SEC probe | Latest News Table

Meme inventory favorite GameStop says it’s topic of SEC probe

GameStop is one among a handful of shares which have been fueled by Reddit merchants who make investments primarily based on social-media buzz.

GameStop Corp., one of many common “meme” corporations whose inventory has soared this yr, mentioned U.S. securities regulators are wanting into the buying and selling of its shares.

The video-game retailer mentioned Wednesday that staffers from the Securities and Alternate Fee contacted the corporate on Might 26, for voluntary manufacturing of paperwork and data associated to the inventory.

“We’re within the technique of reviewing the request and producing the requested paperwork and intend to cooperate totally with the SEC workers concerning this matter,” the corporate mentioned in a quarterly submitting. “This inquiry shouldn’t be anticipated to adversely affect us.”

Since February, securities regulators have been combing social media and message-board posts for indicators that fraud performed a task in dizzying inventory swings for GameStop, AMC Leisure Holdings Inc. and different corporations, individuals acquainted with the matter mentioned on the time.

GameStop is one among a handful of shares which have been fueled by Reddit merchants who make investments primarily based on social-media buzz. Shares of the money-losing chain have gained 1,500% this yr, closing Wednesday at $302.56.

The inventory fell as a lot as 13% in prolonged buying and selling after the corporate introduced it might problem new shares, together with the hiring of two Amazon.com Inc. veterans for prime management roles and monetary first-quarter outcomes.

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