US SEC Investigates 'Blazing Meme'... Focus on Stock Manipulation

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[Asia Economy Reporter Yujin Cho] The U.S. Securities and Exchange Commission (SEC) is launching a large-scale investigation into meme stocks such as AMC, whose stock prices surged due to purchases by individuals united mainly through online communities.

According to Bloomberg News on the 7th (local time), the SEC stated in a press release that it is closely examining whether there were any manipulative or illegal activities during the rapid price increases of AMC and other stocks.

The SEC said in the statement, "The SEC continuously monitors certain stocks and markets exhibiting high volatility and will conduct investigations into market disruptions, price manipulation, and other illegal activities, responding strongly."

The SEC added that if violations of federal securities laws are found as a result of the investigation, it will take measures to protect investors.

The statement came as AMC's stock price surged 20% intraday. AMC closed trading on the New York Stock Exchange at $55, up 14.80% from the previous session, breaking a two-day decline and returning to an upward trend. AMC's stock price soared approximately 2636% this year, from $2.01 at the beginning of the year to $55.

Among meme stocks, AMC, which had the largest increase this year, saw retail investors united mainly through online communities driving up the stock price, and there are claims that fraudulent information circulated during this process. AMC's individual investor ownership is known to reach 80%.

On the same day, besides AMC, GameStop rose 12.74%, BlackBerry 13.78%, Express 15.79%, and Bed Bath & Beyond 7.16%, with meme stocks generally continuing their upward trend.

Previously, regulatory authorities including the SEC, U.S. prosecutors, and the Department of Justice stated that they are thoroughly investigating online communities that were the source of GameStop's price surge earlier this year to determine whether fraudulent information influenced the stock price surge.

Meanwhile, experts continue to warn of a potential reversal amid the seemingly endless bull market. CNBC predicted that nine meme stocks led by AMC (GameStop, BlackBerry, Bed Bath & Beyond, Express, Sundial Growers, Beyond Meat, Palantir Technologies, Tilray) are expected to decline by an average of about 92% over the next 12 months.

This content was produced with the assistance of AI translation services.