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Business News/ Markets / Stock Markets/  US securities regulator suspends trading in 15 stocks due to 'questionable' social media activity
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US securities regulator suspends trading in 15 stocks due to 'questionable' social media activity

This is the regulator's third and largest wave of suspensions in response to social media activity

The SEC continues to review market and trading data to identify other securities where the public interest and the protection of investors require trading suspensions. (REUTERS)Premium
The SEC continues to review market and trading data to identify other securities where the public interest and the protection of investors require trading suspensions. (REUTERS)

The United States securities regulators are engaging in the stock market's version of whack-a-mole -- racing to suspend shares of firms with dubious prospects that have been hyped to the moon on social media.

In a statement, the US Securities and Exchange Commission said it suspended trading in the securities of 15 companies because of "questionable trading and social media activity," the latest in a string of temporary trading halts amid volatile trading in so-called "meme stocks."

One of the firms, a penny stock called Blue Sphere Corp, was recently highlighted in a report after spiking in value following a barrage of posts on online message boards.

"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," Melissa Hodgman, acting director of the SEC's enforcement division, said in a statement.

The Securities and Exchange Commission acted because none of the companies have filed any information with the regulator for over a year, it said in a statement. 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. The regulator has routinely sought to remove moribund companies from exchanges because it’s worried about retail investors suffering losses, but that effort has picked up pace amid this year's wild trading.

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

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 Company

Wisdom Homes of America Inc.

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Published: 27 Feb 2021, 10:12 AM IST
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