Robinhood blocks new purchases of GameStop stock
Robinhood, the online trading application, is preventing users from making new purchases of several stocks, including GameStop Corp. GME,
“We continuously monitor the markets and make changes where necessary,” the statement reads. “In light of recent volatility, we are restricting transactions for certain securities to position closing only.”
In addition to GameStop, the new policy affects shares of BlackBerry Ltd. BB,
Shares in these companies have surged between 26% and 3,087% during January, according to FactSet, with the action appearing to be catalyzed by social media campaigns aimed at boosting their prices and harming professional investors who have sold them short.
Robinhood did not respond to a request to comment.