Published , by Donovan Erskine
Published , by Donovan Erskine
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.