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US SEC suspends trading in 15 stocks for 'questionable' social media activity

Retail interest in certain stocks, most notably GameStop Corp, has surged in a social media frenzy, leading to volatile trading.

February 27, 2021 / 10:43 AM IST

The US securities regulator on February 26 suspended trading in the stocks of 15 companies citing “questionable trading and social media activity" as a part of the agency's effort to foil potential attempts to exploit investors amid the recent market volatility.

In a statement, the Securities and Exchange Commission said that it acted because none of the companies has filed any information with the regulator for over a year. This is the regulator’s third and largest wave of suspensions in response to social media activity.

Retail interest in certain stocks, most notably GameStop Corp, has surged in a social media frenzy, leading to volatile trading.

Game on, again: GameStop surges and no one truly knows why

The SEC is continuing to review the market and trading data to spot other securities to curb “potential attempts to exploit investors during the recent market volatility,” the agency said.

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"We proactively monitor for suspicious trading activity tied to stock promotions on social media and act quickly to stop that trading when appropriate to safeguard the public interest. We also remind investors to exercise caution and do their diligence before investing generally, including in companies promoted on social media," said Melissa Hodgman, Acting Director of the SEC's Division of Enforcement.

Here are the stocks the SEC suspended:

Blue Sphere Corp.
Bebida Beverage Co.
Ehouse Global Inc.
Eventure Interactive Inc.
Eyes on the Go Inc.
Green Energy Enterprises Inc.
Helix Wind Corp.
International Power Group Ltd.
Marani Brands Inc.
MediaTechnics Corp.
Net Talk.com Inc.
Patten Energy Solutions Group Inc.
PTA Holdings Inc.
Universal Apparel & Textime CompanyWisdom Homes of America Inc.
Moneycontrol News
first published: Feb 27, 2021 10:43 am

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