Robinhood raises buying and selling limits on restricted shares, clients should purchase 100 GameStop shares now

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Buying and selling info for GameStop is displayed on the Robinhood App as one other display screen shows the Robinhood brand on this photograph illustration January 29, 2021.

Brendan McDermid | Reuters

Robinhood additional rolled again some if its buying and selling limitations on Tuesday, now permitting purchasers to purchase as much as 100 shares of GameStop.

GameStop climbed off the lows because the Robinhood modifications had been introduced. Shares of the brick-and-mortar retailer are tanking greater than 40%, bringing its week-to-date decline to about 60%.

The brokerage additionally raised the boundaries on AMC Leisure, Categorical and some of the opposite 5 restricted shares. Koss, BlackBerry and Genius Manufacturers are now not being restricted.

The restricted list tells purchasers what number of shares and choices contracts they will purchase pertaining to a specific safety.

Robinhood restricts buying and selling of sure shares

Supply: Robinhood

Robinhood purchasers can now purchase 100 shares of GameStop, up from the earlier quantity of 20 shares. Nevertheless, if an investor owns greater than 100 shares of GameStop, they cannot purchase yet one more share of the inventory.

Purchasers can now purchase 1,250 shares of AMC Leisure, up from the 350 earlier within the buying and selling day. Shares of AMC are down 40% on Tuesday.

Robinhood began proscribing a buying and selling of a handful of shares final week amid a rise in capital necessities from the Depository Belief & Clearing Company because of the retail investing frenzy in closely shorted names. Reddit-obsessed merchants drove GameStop’s top off greater than 400% in an effort to crush the hedge funds shorting the identify.

Nevertheless, whereas GameStop’s inventory rose, regulatory our bodies elevated the quantity that Robinhood wanted to deposit at its clearinghouses in case the trades induced giant losses.

Robinhood raised one other $2.4 billion from traders to help its report buyer development, the company said in a blog post on Monday. This provides to the $1 billion raised final week to shore up Robinhood’s stability sheet in anticipation of the rampant speculative buying and selling. The corporate additionally tapped credit score strains for extra funds.

Robinhood purchasers can now purchase 3,000 shares of Categorical, up from the 1,000 share restrict. Traders should purchase as much as 12,000 shares of Bare Model Group up from the earlier restrictions of 6,500. Nokia’s shopping for cap is identical at 2,000 shares.

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