GameStop (GME) investor Keith Gill, or "Roaring Kitty," is under regulatory scrutiny. The Massachusetts Securities Regulator launched a probe into Gill's GameStop trading activity and social media use after the Reddit account associated with the trader revealed a huge stake in GameStop, causing its shares to surge. Defense attorney and former SEC Enforcement Division Chief Lisa Bragança joins Catalysts to discuss the investigation.
Bragança explains that regulators will seek information about whether Gill's actions amount to market manipulation. To do so, they will investigate his public actions, such as posting memes, and his private conduct in search of an "insidious purpose," the attorney explains. She adds that regulators will look to see if he is coordinating with anyone else to orchestrate a "pump and dump."
The attorney points out that purchasing 20% of a public company and disclosing that stake is "just disclosure." In general, the attorney would advise investors to disclose before they intend to sell so the market can absorb the information. This tactic could help an investor avoid regulatory scrutiny.
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3 окт 2024
