January 28, 2021 Investor warnings - News Securities

Montréal – The Autorité des marchés financiers (the “AMF”) cautions Quebeckers about the very high risks involved in any type of stock market speculation, particularly as encouraged on certain Internet forums and social media.

Over the last few months, and especially since the start of 2021, some discussion forums and social media platforms have been ramping up people’s enthusiasm for certain companies’ stocks. Inexperienced investors or speculators may take the effects on the values of those stocks as an indication of improved earnings or financial performance and invest in those companies. In reality, there is nothing to support this belief.

The stock market values of certain companies’ stocks have recently skyrocketed without there being any credible information indicating the companies could become more profitable, the enthusiasm for such stocks can be very short-lived, and their values may fall as quickly as they rose.

The AMF therefore reminds Quebeckers to exercise caution and use their judgment.

The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.

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