Shares in this article
There are currently no purchase restrictions, the company announced late Thursday night on its website. A good week after the record price at Gamestop, users at Robinhood can once again buy shares in the video game company and other companies such as BlackBerry, AMC Entertainment and Nokia. The same applies to options on these securities.
By the beginning of the week, Robinhood had eased his limitations a bit. In some cases, the purchase of only one share was allowed.
More than half a dozen companies, which were particularly popular with users of the Reddit Internet Forum, have lost a lot of value since the trade ban last week. Shortly after the start of trading, GameStop’s Xetra price was around EUR 44 on Friday, after breaking the EUR 400 mark last week.
Many private investors see the interrupted trading at Robinhood and other brokers as a blockade of impetus: Robinhood surprisingly suspended trading in certain stocks for several hours on Thursday afternoon. The company justified the move with “sustained market volatility”. However, companies such as Starbucks, trivago and Moderna were also affected, which, unlike Robinhood’s presentation, were not subject to exchange rate fluctuations.
Critics feel trapped and suspect reprisals by hedge funds against Robinhood as a reason. Even American politicians like the Democrat Alexandria Ocasio-Cortez and the Republican Ted Cruz, who usually take completely different positions, looked along with private investors.
Brokers like Trade Republic and Trading212 were also in trouble in Germany because they banned their users from accessing the free market. Sometimes only the sale of certain securities was allowed, but not the purchase of new shares. Trading Republic on Wednesday offered an apology for stopping buying certain shares in an “unusual situation”. “We have disappointed the expectations of a modern, democratic and free broker,” it said.
In the GameStop case, private investors were opposed to so-called short sellers such as Citron Research and Melvin Capital, who had made large bets on falling prices for the shares of the companies in question. When prices shot up, some hedge funds suffered heavy losses.
At times, GameStop shares on the NYSE rose 39.04 percent to $ 74.39. Most recently, the price returned to plus 14.39 percent at $ 61.03.
/ ngu / stw / jha /
MENLO PARK (dpa-AFX)
More news about Nokia Oyj (Nokia Corp.)
Image Sources: Sergei Lebedev / Shutterstock.com