Robinhood online trading platform removed trading restrictions on GameStop Corp. shares. and AMC Entertainment Inc. last Thursday.
“There are currently no time limits to increase your positions,” the Robinhood website said Thursday night.
Last week, Robinhood sparked fury and lawsuits from some users by restricting trading on 50 highly volatile stocks that were too short. That list was reduced to eight on Sunday, and by Thursday only GameStop and AMC remained. As of early Thursday, GameStop had a buy limit of 500 shares, while AMC had a 5,500 share limit.
The easing of restrictions comes as the massive wave that lifted GameStop, AMC and others seems to be crashing amid growing regulatory control. After surpassing the all-time high of $ 483 on January 28, GameStop shares GME,
it sank 42% Thursday to close at $ 53.50 and fell 84% this week. AMC AMC Shares,
has dropped 47% this week, closing 21% on Thursday, to $ 7.09.
Treasury Secretary Janet Yellen met Thursday with top financial regulators and vowed to protect investors and maintain “fair and efficient markets.”
Highly volatile trading was spurred on by online commenters, especially on Reddit, who bought shares of several companies to damage short-term sellers ’positions.