Redditors rejoice! Robinhood is once again allowing anyone to trade shares of any stocks, including GameStop and AMC, reports CNBC. The company had restricted the trading last week of certain hot stocks like GameStop and AMC. The limits were put in place after those shares surged in price thanks to massive interest generated from Reddit users on the message board WallStreetBets.
Robinhood said the reason for the restrictions was in order to conform to certain regulatory requirements involving security deposits to clearinghouses. However, many saw Robinhood’s restrictions as more signs of a rigged market in favor of the big guy over the little guy. GameStop’s share surge throughout January saw hedge funds lose billions while small retail investors reaped massive rewards.
As of yesterday morning, many of Robinhood’s restrictions were still in place—though to a lesser degree. Robinhood traders were only allowed to trade 500 shares of GameStop each, and 5,500 shares of AMC each. However, by the end of the day, Robinhood announced a lifting on all restrictions. As the company noted on its website, “there are currently no temporary limits to increasing your positions.”
The question is now, will Redditors come back to Robinhood? Or has Robinhood’s actions left Redditors feeling too burned? Only time will tell (and, perhaps, the direction of GameStop’s share price today).
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