Michigan Congresswoman Rashida Tlaib slammed Robinhood on Thursday after the popular investment app restricted support for Reddit-driven stocks.
This is beyond absurd. @FSCDems need to have a hearing on Robinhood's market manipulation. They're blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who've used the stock market as a casino for decades. https://t.co/CGkJxVfzkv— Rashida Tlaib (@RashidaTlaib) January 28, 2021
Robinhood stopped supporting the purchase of new shares on a handful of stocks supported by the recent Reddit fueled frenzy on Thursday morning.
Robinhood messages posted to various company pages like GameStop, AMC and Nokia, inform users that the stock is not supported on Robinhood, or not available for purchase. Some are allowed to sell.
Robinhood released a statement as markets opened:
Our mission at Robinhood is to democratize finance for all. We’re proud to have created a platform that has helped everyday people, from all backgrounds, shape their financial futures and invest for the long term.
We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities.
We’re committed to helping our customers navigate this uncertainty. We fundamentally believe that everyone should have access to financial markets. We’re humbled to have helped many people invest in the markets for the first time. And we’re determined to provide new and experienced investors with the tools and resources to help them invest responsibly for their long-term financial futures.
A Reddit group known as WallStreetBets has rallied its members behind several stocks, most notably GameStop, which has increased by nearly 1,000% in the last week.
AMC has increased by 400% in the last week. Since the halt, stocks impacted have dropped in value.
The #RobinHood drama is real this morning. The online trading app is not allowing people to buy recent popular stocks like $NOK $AMC & $GME— Logan Sherrill (@LoganSherrillTV) January 28, 2021
However you can sell your current options.
People are NOT happy. pic.twitter.com/cCHCeuMvaT
Interactive Brokers has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation only due to the extraordinary volatility in the markets. In addition, long stock positions will require 100% margin and short stock positions will require 300% margin until further notice.— Interactive Brokers (@IBKR) January 28, 2021