Traders using Robinhood discovered Friday that they were limited in how many shares they could buy of certain companies like GameStop, in response to the stock market chaos caused by Reddit retail traders.
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.
Join and support independent free thinkers!
We’re independent and can’t be cancelled. The establishment media is increasingly dedicated to divisive cancel culture, corporate wokeism, and political correctness, all while covering up corruption from the corridors of power. The need for fact-based journalism and thoughtful analysis has never been greater. When you support The Post Millennial, you support freedom of the press at a time when it's under direct attack. Join the ranks of independent, free thinkers by supporting us today for as little as $1.
Remind me next month
To find out what personal data we collect and how we use it, please visit our Privacy Policy
