GameStop, 50 other shares on Robinhood’s restricted trading checklist

• Robinhood is capping the selection of GameStop shares that customers can invest in to one.
• The application is proscribing trading on 50 other organizations, including Nokia and AMC, CNBC noted Friday.
• Robinhood CEO Vlad Tenev has defended the firm’s selection to halt the investing of specific stocks.
• Check out Business Insider’s homepage for much more stories.

The brokerage app Robinhood applied added stock-trading constraints on Friday night, expanding boundaries to go over 50 businesses, CNBC noted.

New businesses included to the list consist of Aurora Cannabis (ACB), Churchill Money (CIV), Common Motors (GM), Starbucks (SBUX), and various economical, pharmaceutical, and electricity companies, according to CNBC.

Earlier on Friday, Robinhood experienced constrained the selection of GameStop stocks that traders can obtain, according to its web page. The Wall Road Journal documented the news to start with.

Robinhood traders, as of Friday, could hold only one share of GameStop in contrast with the five they were beforehand allowed. Traders are also now constrained to 5 selections contracts, in accordance to The Journal. An supplemental 10 businesses have been extra to Robinhood’s record of restricted stocks, which includes Nokia and AMC Entertainment.

A Robinhood spokesperson verified the new limits in an e mail to Insider.

The shift arrived just after Robinhood stated on Thursday it restricted transactions for some stocks, which includes GameStop, to comply with “monetary requirements” in the wake of a shopping for frenzy drummed up by a group of Redditors.

Go through far more: Robinhood consumer launches class-action suit against the trading application several hours after it blocked buys of GameStop

Robinhood’s non permanent shutdown angered the app’s end users, as effectively as lawmakers like Rep. Alexandria Ocasio-Cortez, and individuals began supplying the corporation 1-star critiques on the Google Perform retail store, dragging its in general user score down. Google then deleted 100,000 of the adverse opinions given that they violated its policies, bringing Robinhood’s ranking again up to 4 stars.

Late on Thursday, Robinhood started to allow consumers to obtain GameStop and AMC shares. Robinhood CEO Vlad Tenev has defended the company’s final decision to halt the investing of certain shares and explained Robinhood is not having difficulties with liquidity problems.

Go through far more: GameStop has surged much more than 600% in the past 7 days. 3 gurus split down in which the stock could go from listed here as Reddit’s military of traders acquire gains and lookup for their following targets.

Robinhood mentioned on Friday it experienced elevated $1 billion in emergency expenditure to deal with the surge in trading on its platform.

News surfaced on Friday that Robinhood was on the hunt for a new federal-affairs supervisor in Washington, DC. The position publishing was made soon after both Democratic and Republican lawmakers identified as for hearings when the app shut down temporarily on Thursday.