Robinhood lifted the temporary limits imposed on the purchase of memes stock, such as GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC).
What happened: “There are currently no temporary limits to increase your positions,” said the broker in a one-line statement.
Why it matters: The lifting of stock buying limits, popularized by the Reddit WallStreetBets investor forum, comes at a time when these stocks drop dramatically.
GameStop’s stock closed 42.11% lower on Thursday at $ 53.50 and fell another 8.09% in the after-hours session to $ 49.17.
AMC shares fell 20.96% on the same day, to $ 7.09, and another 1.41% on the floor, to $ 6.99.
Nokia Oyj (NYSE: NOK) – which delivered a fourth-quarter profit on Thursday – closed down 7.02% at $ 4.37 and lost another 0.46% in the after-hours session.
This week, Tesla Inc (NASDAQ: TSLA) CEO Elon Musk interviewed Robinhood CEO Vladimir Tenev and asked tough questions about suspending meme stock purchases.
Related link: Robinhood CEO on trading interruptions: ‘We made the right decision’
Photo courtesy of: Ardfern via Wikimedia
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.