Robinhood said it will now allow “limited buys” on restricted stocks, including GameStop, AMC, BlackBerry, Nokia and other stocks that had been restricted on Thursday.
- “Starting tomorrow, we plan to allow limited buys of these securities,” the company said in a blog post. “We’ll continue to monitor the situation and may make adjustments as needed.”
- The company did not explain how limited purchases will be available.
Context
On Thursday, Robinhood added restrictions to block users from buying or trading some of the popular stocks on the Reddit r/WallStreetBets stocks following the recent viral craze.
The company told The Verge that the “recent volatility” in the market — spurred after a Reddit page pushed people to buy the stock — was the reason for blocking the access to people
“We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities.”
GameStop stock slipped from $500 on Thursday morning to about $193 on Thursday afternoon because of the Robinhood news.
One more note ...
Robinhood said Thursday that it was raising $1 billion from its investors as the company faced “an onslaught of demands on its cash amid a stock market frenzy,” according to The New York Times.