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Robinhood will now allow users to buy 20 shares of GameStop (GME)

Robinhood has announced changes to how users can buy stocks, including GameStop (GME).

Donovan Erskine

February 1, 2021 12:55 PM

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Robinhood found itself in hot water after it blocked users from buying GameStop (GME) stock, as well as a few others, after a surge in popularity last week. Following large amounts of backlash, Robinhood announced that it will begin to allow users to purchase GME, albeit in limited amounts. Robinhood has now outlined its plans going forward, which includes share purchase limits on a number of stocks. Starting today, users can purchase up to 20 shares of GameStop (GME).

These changes were outlined in a post made to Robinhood’s website titled “Changes due to ongoing market volatility.” There are eight stocks listed in the post that will be seeing limits, including AMC, Nokia (NOK), and GameStop (GME). The new limits being imposed are aggregate, meaning that they’re the total amount of shares that a user can buy/own, not the amount they can purchase per order.

Robinhood assures that users who already own a number of shares that exceed the new limits will not have their shares sold or closed. On that same note, the company cautions “however, you will not be able to open more positions of each of these securities unless you sell enough of your holdings such that you are below the respective limit.” Robinhood will also cease to allow users to buy fractions of these stocks.

When GameStop’s (GME) stock value first began to skyrocket, Robinhood began to block users from buying more of the stock, citing market volatility. This decision was met with extreme backlash, with a lawsuit even being filed against the trading company. It will be interesting to see how Robinhood handles the stock moving forward. For more on Robinhood, as well as the ongoing situation surrounding GameStop (GME) stay right here on Shacknews.

Donovan Erskine

News Editor

Donovan is a journalist from Maryland. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge film fanatic and will talk with you about movies and games all day. You can follow him on twitter @Donimals_