After restricting purchases of GameStop (GME), AMC (AMC), and other stocks on Thursday, January 28, 2021, online broker, Robinhood has announced it will lift those restrictions in a limited quantity on Friday, January 29, 2021.
“It’s been a tough day, and we’re grateful to you for being a Robinhood customer,” Robinhood wrote in an email message to its users. “In light of the extraordinary market conditions this week, we temporarily limited buying for certain securities this morning. Starting tomorrow, we plan to allow limited buys of these securities. We’ll continue to monitor the situation and may make adjustments as needed.”
This email followed a decision by the online broker to restrict purchases for GME and AMC stock on its app and desktop counterpart following what it called a "volatile" period. In response, many users ended up review bombing the Robinhood application, and some even filed complaints against the company.
According to the message that was sent out to users, the decision to restrict the purchase of GameStop (GME) and other stocks was a temporary one made to best continue serving its users. Robinhood also stated in the message that the decision was “not made on the direction of any market maker we route to or other market participants.”
It’s been an interesting day for Robinhood users to say the least, and even other online brokers like Fidelity, Webull, and ETrade saw restrictions on GameStop, AMC, and other stock coming into play. The restrictions were so crazy that many users ended up looking for other places to buy GameStop (GME) stock.
Robinhood closed it’s statement to users, writing, “The past year in particular has shown us that the financial markets are for everyone—not just institutional investors and hedge funds. We’ve seen a new generation enter the market, and they’re sparking conversations about what it means to be an investor. We stand in support of you, our customers. Democratizing finance for all means giving more people access, not less.”
The company also published a blog post on its website detailing the decision to open limited purchases tomorrow.
We’ll continue to keep our eyes peeled for updates about this particular situation. With Robinhood opening up buying again, many eyes will be on the online broker to see what these limits are and how they will affect the users that are still choosing to use Robinhood for their investing means.
Josh Hawkins posted a new article, Robinhood will allow limited buys of GameStop (GME), AMC stock starting tomorrow