SEC Chair Gary Gensler Should Apologize For Using The Term “Meme Stocks” For Publicly Traded Companies In Their Official Statements
In a press release yesterday the headline stated “SEC Charges TradeZero America and Co-Founder with Deceiving Customers about Meme Stock Trading Halts” . The name Meme stocks was initially used by tabloid websites like Benzinga, The Mortley Fool and others to demean publicly trades stocks, that were very popular amongst a subreddit named WallStreetBets.
WallStreetBets users do their due diligence and technical analysis before investing in a particular stock. These investors buy stocks which are heavily shorted by Hedge Funds and hold them for long term. In short, the retail investors are the ones who are helping companies grow, where as Hedge Funds wants them to fail, as they are short and betting against the company.
Every since Gary Gensler became the chair, he has only spoken about the issues like Payment For Order Flow and Dark Pools, but it has been over a year and nothing has been done about it. To add fuel to the fire, the SEC has officially started calling publicly traded companies as “Meme Stocks”, in their press releases.
Its one thing if the media called these serious hard working publicly traded companies Meme Stocks, but the SEC calling them Meme Stocks is just unacceptable and its time for the chair Gary Gensler to apologize for using the term “Meme Stocks” in their official statements.