Robinhood has lifted temporary limits he has on the purchase of so-called meme shares such as GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Ing (NYSE: 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 the purchase limits on shares made popular by the Reddit investor forum WallStreetBets comes because these shares are falling dramatically.
GameStop shares closed 42.11% lower at $ 53.50 on Thursday and fell another 8.09% to $ 49.17 in the after-hours session.
AMC shares fell 20.96% to $ 7.09 on the same day and 1.41% in after-hours trading to $ 6.99.
Nokia Oyj (NYSE: NOK) – which posted a fourth-quarter earnings beat on Thursday – closed 7.02% lower at $ 4.37 and lost another 0.46% in the after-hours session.
This week, Tesla Ing (NASDAQ: TSLA) CEO Elon Musk interviewed Robinhood CEO Vladimir Tenev and asked difficult questions about suspending the purchase of memo shares.
Related Link: Robinhood’s CEO on Trades: ‘We Made the Right Decision’
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