America’s top markets watchdog has said that it is closely monitoring volatility around so-called meme stocks for signs of illicit activity.
The US Securities and Exchange Commission did not name any companies, but issued its statement as shares in AMC Entertainment, the world’s largest cinema chain, rallied by a fifth.
Last week AMC announced two equity sales during the surge in its shares, which it described as “unrelated” to its business. Yesterday they closed up by 14.6 per cent, or $7.02, at $55. Over the past month, they have surged by more than 500 per cent.
A fresh online frenzy this month propelled meme stocks, which include GameStop, the video games retailer, to their highest since the peak of their rallies at the start