The regulators have sounded yet another warning.
The Monetary Authority of Singapore (MAS) and Singapore Exchange Regulation (SGX RegCo) have jointly advised the investing public to be on high alert to the risks related to trading in shares spurred by online discussion forums and social media chat groups.
This follows SGX RegCo’s warning about “pump and dump” schemes going on in Telegram chats and other social media networks.
Mania Fulled By Online Discussions
MAS and SGX RegCo said they have noted interest among Singapore investors in recent activities surrounding US-listed stocks such as GameStop (NYSE: GME), AMC Entertainment (NYSE: AMC), and BlackBerry (NYSE: BB).
They added that discussions on websites and online platforms suggest the possibilities for similar speculative activities in the Singapore stock market.
The Singapore public should be aware that “certain individuals may exploit this interest for their own benefit through “pump and dump” activities that can amount to market misconduct under the Securities and Futures Act”....