WASHINGTON, D.C. (January 29, 2021) –The North American Securities Administrators Association (NASAA) today called on firms and other regulated entities to ensure that investor protection obligations are being met during recent price volatility in shares of certain publicly traded companies.
“Regulated entities have an obligation to their customers. State securities regulators will work with fellow regulators to ensure that investor protection, fairness and transparency are upheld in the public securities markets,” said Lisa A. Hopkins, NASAA President and West Virginia’s Senior Deputy Securities Commissioner. “State securities regulators are closely monitoring this developing situation and will examine actions by online brokerages and others to ensure that they are in compliance with their client obligations.”
NASAA also cautioned investors about the significant risks associated with investing in publicly traded companies that are experiencing extreme price volatility due to stock speculation. “Investing in companies experiencing significant price volatility can be very risky and investors should understand their risk tolerance when considering such investments,” Hopkins said.
Investors can learn more about the fundamentals of investing by visiting the Investor Education area of the NASAA website at www.nasaa.org/investor-education.
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Bob Webster | Director of Communications
Noelle Lane | Communications & Outreach Specialist