Trading Restrictions Tighten

Amid the ongoing saga of trading turmoil, Robinhood has decided to tighten its grip, reducing its previously extensive list of restricted stocks to just eight. Yes, folks, that’s right! Gone are the days when over 50 stocks were off-limits. The current list still holds some heavyweights: GameStop, AMC, BlackBerry, and others all make the cut. However, the restrictions aren’t just for show—they’re real, and they’re here to stay (for now).

Stock by Stock Breakdown

So how does Robinhood’s new world work? Well, let’s break it down:

• GameStop: You can still purchase one single share, plus a maximum of five options contracts. That’s right, just a taste of the meme stock magic.
• AMC Entertainment: A tad more generous here as you’re allowed to buy up to 10 shares and 10 options contracts.
• Other notable inclusions: BlackBerry, Koss, Genius Brands International, and Naked Brand Group, each with similar restrictions.

It’s almost as if they’re doling out stocks like candy on Halloween—except this candy has limits!

Selling Your Way to Freedom

But what if you already own shares thicker than Robinhood’s limits? Well, don’t panic yet. You won’t have to sell off your existing holdings immediately. Instead, you’ll need to pare down your stockpile if you wish to take advantage of new buying opportunities. Robinhood’s guidance states:

“If you already hold a greater number of shares or contracts than the limits listed above, your positions will not be sold or closed. However, you will not be able to open more positions of each of these securities unless you sell enough of your holdings such that you are below the respective limit.”

The Fallout from the GME Frenzy

Oh, and let’s not forget—this drama isn’t limited to just Robinhood! The online trading community has been buzzing, especially since r/WallStreetBets turned GameStop shares into a phenomenon that sent them soaring a staggering 1,400%. Talk about a financial rollercoaster! Thursday saw Robinhood hit the brakes on GME trading, raising more than a few eyebrows.

SEC’s Curious Eye

With all of this chaos swirling, the U.S. Securities and Exchange Commission decided it wouldn’t just sit back and watch. They’ve hinted that they might dive into Robinhood’s antics, particularly over ongoing volatility in stock prices that’s made even the calmest of investors break a sweat.

The Outcry from Users

Fees? Commissions? Nope, it’s the reviews that have been impacted. Users have sent waves of discontent to Robinhood’s Google Play Store page, resulting in a staggering influx of negative reviews—over 100,000! Google kicked into gear, zapping thousands of these reviews they identified as “fake,” but the damage was already done. Currently, the app sits at a barnburner rating of one star with nearly 295,000 reviews. Ouch!

#robinhoodboycott: A Social Movement?

In reaction to the restrictions, users have taken to Twitter with the #robinhoodboycott tag, encouraging people to pull their assets off the platform. And those feelings of discontent aren’t just isolated to Robinhood; similar concerns have led IG Group Holdings to restrict new positions on GME and AMC as they wave the white flag to “extreme volatility.”

Whether you’re on board with the Robinhood revolution or waving your trading flags elsewhere, one thing is clear: this financial drama is far from over!