NEW YORK – The prices of so-called meme stocks can be skewed because the majority of business in those names is done outside of public exchanges where stock pricing takes place, the New York Stock Exchange chief said Wednesday June 15.
“Meme stocks”, which often start out as low-valued, heavily short stocks that are followed by users of online forums like Reddit’s WallStreetBets, are among the most heavily traded and volatile stocks on any given day.
Stocks of companies like video game retailer GameStop Corp and theater chain operator AMC Entertainment have skyrocketed this year, with GameStop rising more than 1,600 percent in January alone, leading to trading bans at some brokers and hearings from Congress and regulators led.
