SEC to review actions by companies amid market volatility

The United States Securities and Exchange Commission (SEC) has issued a statement in terms of the recent market volatility.

The SEC said it is closely monitoring and evaluating the extreme price volatility of certain stocks' trading prices over the past several days. According to the statement, the regulator stated that extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence. 

The SEC said it is working closely with the government, FINRA and other self-regulatory organizations to ensure that regulated entities uphold their obligations to protect investors. The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities.

In addition, the regulator will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws. Likewise, the SEC said issuers must ensure compliance with the federal securities laws for any contemplated offers or sales of their own securities.