Video game retailer GameStop, whose market volatility earlier this year led the so-called “meme stocks” craze, disclosed it is cooperating with an investigation launched by the Securities and Exchange Commission (SEC).
During a two-week span in late January and early February, GameStop’s value jumped from $2 billion to over $24 billion as a rush of small investors bought the stock, egged on by others on social media. The stock subsequently crashed, in part because of a brief trading halt by FinTech platform Robinhood. Similar wild swings of value occurred with other previously moribund stocks like AMC Entertainment Holdings and BlackBerry.
