The 2021 GameStop stock surge (opens in new tab) seems to have acquired a new lease of life in recent weeks. First, one of the hedge funds that took a big short position against the stock announced it was to close (opens in new tab). And now, the US Securities and Exchange Commission (SEC) has concluded an investigation (opens in new tab) into an online brokerage and its co-founder—and slapped them with a combined $125,000 in fines for a ten-minute restriction on trading so-called meme stocks.

The SEC charged broker-dealer TradeZero America Inc. and co-founder Daniel Pipitone with “falsely stating to the firm’s customers that they didn’t restrict the customers’ purchases of meme stocks when in fact they did.” And how!


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