No. of Recommendations: 4
I just picked on GME and AMC because they've been complicit to degrees. When you read reuters.com - Column me..., that is the current CEO of GME. AMC is less so, but they have taken advantage of the situation with equity swaps and offerings. It's hard to define a meme stock, and maybe the term muddies the waters, but market manipulation is happening here and tolerated by the companies. Tolerated by the companies? Heck, AMC issued a new round of treasury shares when the meme craze was at its height to cash in. Tolerated? I’d say “celebrated”, mostly.
But I return to the original point. How do you define when a real stock is a “meme stock” - and what do you do about it? At some point the “meme-ness” of both Game Stop and AMC wore off, and they returned to being just normal stocks, at least until the magician behind the curtain started posting about them again. What was that point? And what do you do about it?
How do you craft a regulation which doesn’t harm ordinary stock holders but at the same time does what you seek to do? I’m truly unable to envision a regulation which does so fairly.
