SEC to limit MooMoo and other Investment apps
The SEC’s proposed rule governing how brokerages and investment management firms use artificial intelligence and predictive analytics is to be released this month. They look to stop trading decisions that “optimize for, predict, guide, forecast, or direct investment-related behaviors or outcomes."
The SEC believes that customers just shouldn’t invest on their own on self-directed platforms. Basically they believe people arent educated enough to invest in the market and that some are using it as a type of gambling activity which is causing addictive behaviors amongst the investors. Also the apps promote constant trading because the more the investor buys/sells the more the app profits.
Congress urged the SEC to not impose the rule change last week but the SEC rarely listens to Congress. I know one thing if the rule does go thru watch their stock prices crash down to penny stock range.
Stocks buzzing:
$Fisker(FSR.US$ investors looking for Nissan to bail the company out.
$Energem Corp(ENCP.US$ Investors looking for price reversal once merger taked place this week.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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