Shares of General Electric Co. GE, -2.96% took a dive in afternoon trading Tuesday, after the industrial conglomerate disclosed that it received a"Wells notice" from the Securities and Exchange Commission related to an investigation into revenue recognition practices. The notice advises GE that the SEC staff is considering recommending a civil injunctive action against the company for possible violations of securities laws. The stock sank 3.
2%, after being up about 1.6% just before the disclosure. The SEC's investigation comes after GE shocked investors in January 2018 by saying it was taking a multibillion charge following a review of GE Capital's insurance portfolio. The scope of the investigation was expanded after GE's announcement in October 2018 of a goodwill impairment charge related to its power business. GE's stock has tumbled 44.4% year to date, while the Dow Jones Industrial Average DJIA, +0.