According to an update on the trading platform’s support page, Robinhood Markets Inc. has removed limits on buying shares of GameStop and AMC Entertainment Holdings Inc., stocks at the centre of the battle between Reddit-empowered retail traders and short-sellers.
Earlier in the day, Robinhood’s website showed that the trading limit on GameStop’s shares was set at 500, while for AMC the limit was set at 5,500 shares. Trading restrictions on a few other stocks had been lifted on Wednesday.
GameStop has plunged 84% so far this week while AMC has lost 47% as retail traders flocked to other corners of the stock market, such as small drug developers. The stocks skyrocketed in late January as a band of retail traders that populate Reddit’s WallStreetBets forum sought to fend off short-sellers.
GameStop’s shares and others favoured recently by retail investors fell further on Thursday, while the U.S. Treasury Secretary Janet Yellen vowed to protect investors, but also said financial market regulators needed to fully understand the recent trading frenzy before taking any action.
Vlad Tenev, the CEO of Robinhood, said to USA Today this week that, “the firm built the trading app to serve the millions of people left behind by the U.S. financial system — not hedge funds”.
