on Wall Street, you have some hedge funds that are active in what's called short selling. So these air companies, who instead of betting that a company is gonna prosper in the future, they think is gonna do badly, and they think that the stock's going to fall, the volatile moves we're seeing in the stock. Gamestop and some others, but particularly Gamestop have nothing to do with the company's actual prospects. This is a company that has lost a lot of money over the last year, for understandable reasons. It's based in malls, and it sells physical copies of video games, so it's easier and cheaper to trade now and now you have training camps like Robin Hood, who and others who offer no cost trading. So it's kind of turned into a bit of an amusem*nt for quite a lot of people, and that's what you're seeing here is you're seeing a large army, really, of individual investors who have decided that they want to take on the the big Wall Street hedge funds. Their goal that, they say, is to democratize finance. But they've already gotten in trouble with regulators for what the regulators say is encouraging uh, kind of a game ification of investing these individual investors. These amateur investors are not necessarily doing this to the broader stock market. They're focusing on a handful of stocks that are also the focus of thes headphones. So, yes, in a way, there really is a kind of an occupy Wall Street aspect to this absolutely.
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Robinhood lifts trading restrictions on all stocks including GameStop, AMC
Video above: An explanation of shorting and 'democratizing' stocksRobinhood lifted trading limits on GameStop, AMC and other Reddit favorites Friday, easing restrictions that engulfed the free-trading app in controversy last week."There are currently no temporary limits to increasing your positions," Robinhood said in a blog post.Robinhood outraged customers and lawmakers last week by temporarily suspending purchases of GameStop, AMC, BlackBerry and other stocks backed by an army of traders on Reddit. The restrictions set off calls to boycott the online brokerage and set in motion investigations in Congress.Robinhood has been gradually easing trading restrictions over the past week, increasing the number of shares that users can buy of Reddit stocks.The startup blamed the temporary buying ban on surging market volatility, which drove its deposit requirements at clearinghouses dramatically higher. Robinhood repeatedly denied it was acting at the behest of hedge funds hurt by the GameStop rally. The trading app turned to investors to rapidly raise $3.4 billion, exceeding its total fundraising in the company's history to that point.After crashing more than 83% so far this week, GameStop shares rallied 8% during premarket trading Friday. AMC rose 5%, regaining a slice of its sharp losses this week.In a Twitter thread Thursday, Robinhood CEO Vlad Tenev acknowledged the challenges facing the fast-growing startup."Transforming an industry from the inside takes determination, hard work, investment, and a laser focus on the people we want to serve," Tenev said. "Occasionally there are shortfalls along the way."Treasury Secretary Janet Yellen summoned regulators at the Securities and Exchange Commission, Federal Reserve and other agencies Thursday to discuss the Reddit-driven market volatility."The regulators believe the core infrastructure was resilient during high volatility and heavy trading volume and agree on the importance of the SEC releasing a timely study of the events," the Treasury Department said in a statement Thursday.Treasury said the SEC and Commodities Futures Trading Commission are reviewing "whether trading practices are consistent with investor protection and fair and efficient markets."
Video above: An explanation of shorting and 'democratizing' stocks
Robinhood lifted trading limits on GameStop, AMC and other Reddit favorites Friday, easing restrictions that engulfed the free-trading app in controversy last week.
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"There are currently no temporary limits to increasing your positions," Robinhood said in a blog post.
Robinhood outraged customers and lawmakers last week by temporarily suspending purchases of GameStop, AMC, BlackBerry and other stocks backed by an army of traders on Reddit. The restrictions set off calls to boycott the online brokerage and set in motion investigations in Congress.
Robinhood has been gradually easing trading restrictions over the past week, increasing the number of shares that users can buy of Reddit stocks.
Confused about this GameStop saga? Here are the 5 things you need to know
The startup blamed the temporary buying ban on surging market volatility, which drove its deposit requirements at clearinghouses dramatically higher. Robinhood repeatedly denied it was acting at the behest of hedge funds hurt by the GameStop rally. The trading app turned to investors to rapidly raise $3.4 billion, exceeding its total fundraising in the company's history to that point.
After crashing more than 83% so far this week, GameStop shares rallied 8% during premarket trading Friday. AMC rose 5%, regaining a slice of its sharp losses this week.
In a Twitter thread Thursday, Robinhood CEO Vlad Tenev acknowledged the challenges facing the fast-growing startup.
"Transforming an industry from the inside takes determination, hard work, investment, and a laser focus on the people we want to serve," Tenev said. "Occasionally there are shortfalls along the way."
Class-action lawsuit filed against Robinhood following outrage over GameStop stock restriction
Treasury Secretary Janet Yellen summoned regulators at the Securities and Exchange Commission, Federal Reserve and other agencies Thursday to discuss the Reddit-driven market volatility.
"The regulators believe the core infrastructure was resilient during high volatility and heavy trading volume and agree on the importance of the SEC releasing a timely study of the events," the Treasury Department said in a statement Thursday.
Treasury said the SEC and Commodities Futures Trading Commission are reviewing "whether trading practices are consistent with investor protection and fair and efficient markets."
A college student made big bucks off GameStop stock. Now he's donating video games to a children's hospital
