The United States Securities and Exchange Commission or SEC is currently searching for clearness regarding the GameStop issue. SEC Chairman Gary Gensler provided his viewpoints on the matter last Wednesday, January 26.
We are interested to learn about this latest report regarding GameStop Corporation and sharing it with our readers. We believe we can further comprehend how the matter relating to this Grapevine, Texas-headquartered electronics retail company will be managed by the proper authorities.
Based on the report posted online by Fox Business, which delivers the latest news in the business, small business, finance, and investment sectors, Gensler took over the SEC after the January 2021 brouhaha involving GameStop Corporation. Among his tasks was determining what was suspect when the stock market went haywire on January 28 last year.
In a lengthy GameStop report titled “Staff Report on Equity and Options Market Structure Conditions in Early 2021,” rumors of global interference linked to hedge funds were ruled out. As the SEC is still in the process of looking for clarity at the time of writing, Gensler released his official statement on Wednesday last week.
He relayed that last January 2021’s events involving GameStop offered the chance to consider how his institution could further its efforts in making the equity markets as efficient, fair, and orderly as possible. Nevertheless, Gensler also urged for more feedback.
He affirmed that he is looking forward to staff recommendations addressing their conclusions and areas for further consideration in the GameStop report. Gensler’s official statement last week comes as it has been one year since retail investors took stocks on a wild ride.
The US stock market obtained a jolt and an in-your-face introduction in January 2021 to a fresh crop of meme stocks. That time was when Reddit traders and the retail trading community waged a battle versus hedge funds and short-sellers.
GameStop shares climbed and then cratered. As the Dow Jones Market Data Group tracked, such an event on January 27, 2021, involving the largest video game retailer worldwide specializing in consumer electronics, video games, and gaming merchandise, dispatched US trading volume across all stock exchanges to the biggest day of the year.
Stock market trading volume has not hit that level since. The SEC was called on to address the stock market volatility in the months that followed. Even the White House weighed in. GameStop shares are down 34 percent year to date.
We think SEC Chairman Gensler’s intent to get more information regarding the GameStop issue is appropriate. We also believe he is targeting a lucid scenario for the issue involving the electronics retail giant to allow his institution to properly resolve potentially similar cases possibly arising in the future.