Robinhood restricts app users to only buy one share of GameStop and expands list of limited companies

The trading app expanded its original list of restricted stocks from 13 to 50. Of the companies on the list, the maximum number of shares that could be purchased was five and for some companies that number was only one. Some of the restrictions on certain companies stipulated that if users already owned shares of those companies, they were not allowed to buy more.

GameStop closed up 67 percent on Friday and was off its previous highs of the session after the limits were implemented. Earlier in the day, Robinhood users were able to buy up to five shares of GameStop. AMC Entertainment closed up 53 percent but was also off their high of the day.

The stock trading app also expanded its previous list of restricted stocks and added Advanced Micro Devices, Starbucks, Novavax, General Motors, Beyond Meat among others.

On Thursday, Robinhood told users they were only allowed to sell shares, not buy new ones. The app also raised margin requirements, restricting leverage to buy securities. Robinhood users were furious over the decisions, some having already filed a class action lawsuit against the company on Thursday.

Robinhood had claimed earlier in the week that the original restrictions were risk management decisions to protect Robinhood and its clearinghouses, but promised the restrictions would be eased on Friday.