SEC Warns Companies About Stock Price Volatility Disclosures

Feb. 8, 2021, 9:05 PM UTC

Companies looking to raise money amid recent price volatility in their stock should disclose the risks to them and their investors, the SEC said.

The guidance from Securities and Exchange Commission staff Monday doesn’t include any new obligations for companies but emphasizes the importance of using offering documents and other agency filings to report risks during market volatility.

The reminder came as the SEC scrutinizes the wild stock swings involving GameStop Corp. SEC Acting Chair Allison Lee met with Treasury Secretary Janet Yellen and other financial regulators last week to discuss the frenzy.

The guidance included a sample letter the ...

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