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Why did Robinhood block trading of GME?
Robinhood said in a blog post published at the end of January said that it, too, suspended trading in GME and other securities due to clearing firm costs.
Why do stocks stop being supported on Robinhood?
Stocks may not be searchable, or may be labeled as untradable for a few reasons: The stock was delisted from the major exchanges and trades in the OTC market. It’s a foreign security, which we don’t support. The security is undergoing a corporate action.
Can Robinhood legally restrict stocks?
While Robinhood’s customer agreement clearly states that it can suspend trading at any time, it does raise questions about whether the platform treated some users differently than others, especially after cases in the past decade of market manipulation by short sellers that disadvantaged retail investors, said Mitts.
Are Robinhood restrictions lifted?
“There are currently no temporary limits to increasing your positions,” Robinhood said in a statement on its website. …
Why did GameStop stop trading?
GameStop trading was halted at 3:38 p.m. ET and again at 3:46 p.m. ET due to volatility, according to the NYSE’s website. The company’s stock closed at $91.71. Shares surged one day after GameStop announced that its chief financial officer, Jim Bell, would resign from his post in March.
Who stopped trading GameStop?
Robinhood, which relies on a subsidiary of the DTCC called the National Securities Clearing Corporation (NSCC) to clear its trades, stopped all buying in shares of GameStop (ticker: GME), AMC Entertainment (AMC) and other stocks on Jan. 28.
Why did Robinhood stop buying GameStop stock?
However, Robinhood made the surprising move to restrict buying GameStop citing issues with volatile stock and regulatory requirements. Due to its part in the trading frenzy, Robinhood has been scrutinized by its users, regulators and lawmakers. Catch up on the biggest news stories in minutes.
Why is Robinhood limiting users from buying some stocks?
On the morning of Jan. 28, Robinhood posted a blog saying it was limiting users by preventing them from buying stocks from several companies such as GameStop, AMC and Nokia. It cited “market volatility” as its reasoning and would only allow customers to sell their shares of these companies, not buy or trade in any other way (more below).
What happened to Robinhood’s GME?
There’s was also a lawsuit filed on Jan. 28 in the Southern District of New York accusing Robinhood of “purposefully, willfully, and knowingly removing the stock ‘GME’ from its trading platform in the midst of an unprecedented stock rise deprived retail investors of the ability to invest in the open-market.”
Why can’t you trade GameStop stock?
Trading platforms are limiting trades of GameStop and other companies. Retail stockbrokers placed restrictions on Wednesday on trading of GameStop, AMC Entertainment Holdings and other securities as the companies have become the center of a frenzy that has driven triple-digit spikes in their stock prices in recent days.