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How Regulators Are Investigating GameStop’s Stock Volatility

The SEC probes Reddit-fueled rally that rocked Wall Street.

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The recent frenzy surrounding GameStop stock caught even the most careful market observers by surprise as shares in the struggling retailer skyrocketed to unbelievable levels only to fall again soon after. This video looks at how regulators at the SEC are looking into the matter and the possible consequences that could fall on companies like Reddit and Robinhood. 

Questions:

  1. Why is the SEC investigating the recent stock market volatility surrounding GameStop and other companies?
  2. Do you think federal regulators should punish firms like Reddit and Robinhood for their possible roles in recent stock market volatility? Why or why not?
Author: NickelsMcHughMcHugh