Robinhood online trading platform has removed trading restrictions on GameStop Corp. shares. and AMC Entertainment Inc. late Thursday.
“Currently, there are no temporary limits to increasing your positions,” the Robinhood website said Thursday night.
Last week, Robinhood sparked outrage – and lawsuits – from some users, restricting the trading of 50 highly volatile stocks, which were very short-circuited. This list was reduced to eight on Sunday, and until Thursday only GameStop and AMC remained. Earlier on Thursday, GameStop had a 500-share limit, while AMC had a 5,500-share limit.
The reduction in restrictions comes as the massive wave that has lifted GameStop, AMC and others seems to be collapsing amid growing regulatory scrutiny. After reaching a record high of $ 483 on January 28, GameStop shares GME,
sank 42% on Thursday to close at $ 53.50 and fell 84% this week. AMC Stock AMC,
fell 47% this week to 21% on Thursday at $ 7.09.
Treasury Secretary Janet Yellen met with top financial regulators on Thursday and vowed to protect investors and maintain “fair and efficient markets.”
The highly volatile transaction was stimulated by online commentators, especially from Reddit, who bought shares in several companies to ruin the positions of short sellers.