Has the US government openly intervened in the trading of GameStop stock?
Friday, January 29, 2021
By Christopher Hutton
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NO
On Jan. 29, following a rapid increase in the price of a video game retailer's stock, the Securities and Exchange Commission said it was “monitoring and evaluating the extreme price volatility of certain stocks’ trading prices.” Regulators have not publicly discussed any intervention.
Speculative buying fueled by members of a discussion group on Reddit, a social-media platform, drove the price of GameStop stock to a high of $347 on Jan. 27, up from around $5 in mid-2020. The Grapevine, Texas-based company reported an $18.8 million loss on a 30% decline in sales in its latest quarter, ending Oct. 31, 2020.
This fact brief is responsive to conversations such as this one.
Sources
Securities and Exchange Commission US Securities and Exchange Commission: Public statement, Jan. 29, 2021
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