Robinhood Slammed After Halting Customers From Shopping for Surging Shares

Customers of the favored stock-trading app Robinhood expressed outrage on Thursday after the platform abruptly stopped permitting the acquisition of high-flying shares like GameStop and AMC Leisure Holdings.

Charles Schwab and Interactive Brokers additionally clamped down on the largely beginner merchants who’ve pushed the value of so-called meme shares to stratospheric heights in latest days. Robinhood customers pushed again on social media, decrying the actions as “rigged” and “full bullshit.”

“The free market is barely free till wealthy folks lose cash,” one tweeted.

Others referred to as it “market manipulation” and urged buyers to carry onto their shares.

GameStop has been a spotlight of the Reddit-driven rebellion, with folks on the r/WallStreetBets subreddit banding collectively to hype the inventory and buy it in droves. The shares soared, impacting bets by hedge funders that the online game chain’s shares would fall, and locked in huge losses. At the least one hedge fund wanted a bailout. The frenzy has boosted GameStop’s market worth $10 billion in latest weeks and revealed as soon as once more the on line casino tradition that powers the monetary business.

Shares of GameStop and AMC Leisure continued their gyrations Thursday. GameStop dropped as a lot as 64%, triggering a buying and selling halt for volatility. AMC dived 61%. 

Earlier, Robinhood posted a weblog discover.

“In mild of latest volatility, we’re limiting transactions for sure securities to place closing solely, together with $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We additionally raised margin necessities for sure securities,” the corporate wrote.

Robinhood additionally emailed clients a be aware that appeared to supply recommendation on methods to be “an knowledgeable investor.”

Folks on the r/WallStreetBets subreddit even have pushed wild will increase within the inventory costs of different corporations ― together with AMC, BlackBerry, Nokia and the started-as-a-joke cryptocurrency Dogecoin.

Whereas buyers can select from a mess of brokerages, the easy-to-use Robinhood app is interesting to informal merchants and new buyers. It has grown in style on TikTok and helped proliferate an complete style on the app referred to as StockTok.

Robinhood didn’t reply to HuffPost’s request for touch upon the transfer to cease consumers from buying sure shares.

Different brokerages additionally took steps to calm the frenzy. “Within the curiosity of mitigating danger for our firm and purchasers, we now have put in place a number of restrictions on some transactions in $GME, $AMC and different securities,” TD Ameritrade informed MarketWatch on Wednesday.  

Many on Twitter urged folks to hold onto their investments.

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