Brokerages limit trading in GameStop, sparking outcry
January 28, 2021 10:20AM AKST
FILE – This Dec. 17, 2020 file photo shows the logo for the Robinhood app on a smartphone in New York. The online trading platform Robinhood is moving to restrict trading in GameStop and other stocks that have soared recently due to rabid buying by smaller investors. (AP Photo/Patrick Sison)
By ALEX VEIGA AP Business Writer
Robinhood and other online trading platforms are moving to restrict trading in GameStop and other stocks that have soared recently due to rabid buying by smaller investors. GameStop stock has rocketed from below $20 to more than $400 this month as a volunteer army of investors on social media challenged big institutions who has placed market bets that the stock would fall. Among the restrictions announced by Robinhood on Thursday, investors would only be able to sell their positions and not open new ones in some cases, and Robinhood will try to slow the amount of trading using borrowed money.
