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Meme shares popular GameStop says it is subject to SEC scrutiny | Financial markets news


GameStop is one of a handful of stocks that have been fueled by Reddit merchants investing in social media buzz.

GameStop Corp., one of the well-known “mem” companies whose shares have risen this year, said that US securities regulators are looking to sell its shares.

The retailer of video games announced on Wednesday that the staff of the Securities and Exchange Commission contacted the company on May 26 for the voluntary production of documents or information related to the stock exchange.

“We are in the process of reviewing the request, submitting the requested documents, and intend to fully cooperate with the SEC staff in this matter,” the company said in a quarterly statement. “It is expected that this investigation will not adversely affect us.”

Since February, securities regulators have been combing social media և bulletin boards, noting that fraud has played a role in the dizzying stock fluctuations of GameStop, AMC Entertainment Holdings Inc. and other companies. At that time, people familiar with the case said.

GameStop is one of a handful of stocks that have been fueled by Reddit merchants investing in social media buzz. Shares of the money-losing chain gained 1,500% this year, closing at $ 302.56 on Wednesday.

The company said it could issue new shares, which fell 13% during the extended trading session, as it hired two veterans of Amazon.com Inc. for top management և first-quarter financial results.





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