SEC to probe the actions that restricted AMC, GameStop stock trades

Securities and Exchange Commission said on Friday that they plan to closely review the decisions of brokerage companies that have acted this week to curb the right of customers to trade volatile stocks such as GameStop Corp.

The Agency said in a statement that it will "closely monitor and assess the extreme price volatility of the trading prices of certain stocks over the past several days" and will "review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities."

The famous stock trading app Robinhood has attracted the internet's ire over the past week when it restricted trades of GameStop, AMC, and other wildly swinging stocks.

For a brief while, the move disrupted a showdown between Reddit users and big investors that has become one of the biggest controversies in the history of Wall Street. Now, the Securities and Exchange Commission claims what happened would be "closely review"

As shares of struggling companies surge, the SEC has faced increasing demands from politicians and shareholders, spurred largely by concerted efforts from stock traders' online communities.

Members of the r/WallStreetBets Reddit forum invested cash into the shareholdings of GameStop, AMC, Nokia, BlackBerry, and other firms by hedge funds. These stocks, catching the interest of the financial community and Congress, have whipsawed between unprecedented heights and serious losses.

(This is a developing story)