Investors and traders are dialed in on inflation, economic data, and interest rates this week, so let’s take a minute to get ahead of what’s to come.
First, we have rates on the rise, and long-term investors are wondering if the recent spike will derail some of the existing trends that. Read More.
6 Min Read
(Reuters) - The U.S. Securities and Exchange Commission waded into the battle between small investors and Wall Street hedge funds on Friday, warning brokerages and social-media traders it was on alert for any wrongdoing in this week’s roller-coaster trade.
GameStop shares rallied again, awarding retail investors the advantage in the latest round of their week-long slugfest against major financial institutions that had shorted the video game retailer.
The so-called “Reddit rally” has inflated stock prices for GameStop and other previously downtrodden companies that individual investors championed on social media forums such as Reddit’s Wallstreetbets, which has almost 6 million members.
The price of bitcoin soared more than 1,000 percent in 2017 but has lost around 40 percent of its value since peaking close to the $20,000 per coin level. Needless to say, expert forecasts for the digital currency s performance in 2018 and beyond range from plummeting 90 percent to a tripling. Read More. Don t Miss Any Updates! News Directly in Your Inbox Subscribe to:
GameStop s rally cools as U.S. regulators eye wild trading
Robinhood said on its website that it was easing some restrictions, but still not allowing purchases of fractional shares in GameStop and 12 other companies, effectively meaning smaller investors have to bet more in order to buy in further to the trade.
Written By:
Sagarika Jaisinghani and Medha Singh / Reuters | 2:14 pm, Jan. 29, 2021 ×
A GameStop store is seen in New York on Jan. 27. REUTERS/Nick Zieminski/File Photo
Jan 29 (Reuters) - The U.S. Securities and Exchange Commission waded into the battle between small investors and Wall Street hedge funds, warning brokerages and the pack of social-media traders that it was watching for potential wrongdoing.
SEC Says It’s Reviewing Recent Trading Volatility Amid GameStop Frenzy
The Securities and Exchange Commission (SEC), the top U.S. financial regulator, said Friday that it is reviewing recent trading volatility that led to the rise of GameStop, AMC, and others.
The agency said it would protect retail investors and promised to investigate actions taken by hedge funds and brokerages that might “disadvantage investors or otherwise unduly inhibit their ability to trade certain securities.”
“We will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws,” the SEC said in a news release.