Washington, D.C. – U.S. Senator Pat Toomey (R-Pa.) issued the following statement:
“I find it disturbing when retail investors who are simply seeking to buy a stock are frozen out of the market. The rapid ascent of a few stocks has all of the characteristics of a bubble, and like all investment bubbles in history, this will end poorly for the people buying stock late—just as it did for the hedge funds that shorted the stock early. But retail investors should be free to purchase even highly-speculative stocks, just as hedge funds should be free to short them. And all investors should accept the consequences—whether they gain or lose—from their decision.
“Broadly speaking, the rise of new trading platforms and zero-commission trades has been a terrific development for retail investors who now have a greater opportunity to accumulate wealth. When examining this episode, regulators and Congress should tread with extreme caution and avoid needlessly inserting themselves into equity markets.”