Robinhood has lifted temporary limits it imposed on the purchase of so-called meme stocks like GameStop Corp GME and AMC Entertainment Holdings Inc AMC.
What Happened: “There are currently no temporary limits to increasing your positions,” the broker said in a one-line statement.
Why It Matters: The lifting of purchase limits on stocks made popular by the Reddit investor forum WallStreetBets comes as these stocks fall dramatically.
GameStop shares closed 42.11% lower on Thursday at $53.50 and fell another 8.09% in the after-hours session to $49.17.
AMC shares fell 20.96% on the same day to $7.09 and fell another 1.41% in the after-hours trading to $6.99.
Nokia Oyj NOK — which delivered a Q4 earnings beat on Thursday — closed 7.02% lower at $4.37 and lost another 0.46% in the after-hours session.
This week, Tesla Inc TSLA CEO Elon Musk interviewed Robinhood’s CEO Vladimir Tenev and posed tough questions on the suspension of buying in meme stocks.
Photo courtesy: Ardfern via Wikimedia
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.