News

Crackdown Begins As SEC Suspends Trading In Pennystock

It appears that there’s such a thing as pumping a worthless stock too far.

Today the SEC made it clear that it won’t sit idly by as millions of daytraders gang up and pump pennystocks to the moon after it announced it would bar trading in SpectraScience , a Minnesota healthcare company, the FT reported. The suspension comes as new and inexperienced retail traders have flooded into the market drawing scrutiny from policymakers in Washington.

In addition to launching a probe in “market manipulation” by Reddit raiders and Robinhood earlier today, the SEC said social media accounts may have been used in a coordinated attempt to “artificially influence” the share price of the company, which does not have a working phone line or website and has not filed quarterly financial results since 2017.

MORE

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s