AGI. Some brokerage firms have decided to stop buying GameStop stocks after the strong rises of the past few weeks due to coordinated action by small investors gathered on a Reddit forum. Robinhood markets, Webull Financial and Interactive Brokers have limited access to trading of the shares of the video game store chain which is currently sliding to Wall Street losing 30%. In the last month the stock has grown by 335%.
The three brokerage firms said Thursday that they had decided to restrict trading in the securities. In a post on his blog, Robinhood wrote that transactions on a few titles, including in addition to GameStop, include Amc, BlackBarry, Bed Bath & Beyond, Express Inc, and Nokia. All of these stocks have been subject to the same bullish trends in recent weeks. Same thing for Interactive Brokers, which in a tweet announced the closure of trading of these securities due to the “extraordinary volatility of the markets”. Also on Twitter, Webull wrote that “he will no longer allow clients to open new positions” on these stocks, attributing the decision to the “extreme volatility” of the shares.
“This is unacceptable. We need to know more about Robinhood’s decision to block retail investors from buying the securities while hedge funds are free to trade stocks as they see fit. So on Twitter Alexandria Ocasio-Cortez, US dem dputate and member of the House Financial Services Committee. “As a member of the financial services committee, I will hold a hearing if necessary.”
Absolutely
— Elon Musk (@elonmusk) January 28, 2021
Elon Musk supports Alexandria Ocazio-Cortez’s proposal to ask for an investigation after the halt to trading of GameStop securities decided by some brokerage firms: “Absolutely” replies the Tesla founder to the tweet of the American deputy in which he launched the proposal a hearing in the Financial Services Committee.
Musk has closely followed the sprint of the title of the Texan company. On January 26, during the stock boom, he tweeted “Gamestonk”, playing on the name of the company, but replacing Stop with “stonk”, which translates to “a barrage of hits”. In the tweet Musk had also linked the Reddit channel where at that moment users were organizing to invest in the Texan video game chain.
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