GameStop is one of the shares fed by Reddit traders who invest on social media.
GameStop Corp., one of the most popular “meme” companies to raise shares this year, said U.S. securities regulators are considering trading its shares.
The video game vendor said Wednesday that Securities and Exchange Commission staff contacted the company on May 26 to voluntarily produce stock-related documents and information.
“We are in the process of reviewing the application and producing the required documents, and we intend to fully cooperate with SEC employees on this issue,” the company said in a quarterly statement. “It is not expected that this investigation will have a detrimental effect on us.”
Since February, securities regulators have been combing social media and message board messages with GameStop, AMC Entertainment Holdings Inc. and looking for signs that were affected by the scandals in other incidents for other companies, people who knew the subject at the time said.
GameStop is one of the shares fed by Reddit traders who invest on social media. The shares of the losing money chain have gained 1,500% this year, closing at $ 302.56 on Wednesday.
The stock fell to 13% in long-term trading after the company announced it would issue new shares, along with hiring two veterans from Amazon.com Inc. to achieve top leadership roles and first-quarter fiscal results.