In Financial Times’ “The Banker,” Craig Marcus Addresses Legal Risks for Retail Investors in Social Media-led Rallies of ‘Meme Stocks’
In a Financial Times’ “The Banker” article, capital markets partner and co-chair Craig Marcus (Boston) examined the legal risks for retail investors who talk up the price of certain stocks online.
Craig explains that offering positive opinions of an unpopular stock, and encouraging others to buy, is not of itself market manipulation, and is unlikely to break US Securities and Exchange Commission rules.
He notes that it’s hard to see a claim for market manipulation. What we saw with retail investors on social media sites, talking up a stock in order to squeeze short sellers, may have grabbed attention, but it’s not, on its own, illegal.