[Asia Economy Reporter Cho Hyun-ui] The U.S. stock trading app 'Robinhood' has reduced the number of stocks with trading quantity restrictions from 50 to 8.
According to major foreign media including Bloomberg on the 1st (local time), Robinhood will reduce the number of restricted stocks from 50 to 8 starting that day.
The stocks are ▲GameStop ▲AMC Entertainment ▲BlackBerry ▲Express ▲Genius Brands International ▲Cosi Corp ▲Naked Brand Group ▲Nokia.
For GameStop, only 1 share can be purchased and options trading is limited to 5 contracts. AMC, whose stock price surged along with GameStop, can be bought up to 10 shares and options trading is allowed up to 10 contracts.
When retail investors on the U.S. online community Reddit's stock information sharing board collectively bought shares in opposition to short sellers, the stock prices of the two stocks rose by 500% and 277% respectively within a week.
Robinhood imposed trading restrictions allowing only sales by individual investors. However, facing strong criticism, Robinhood explained on the 30th of last month that the temporary suspension of purchases for some stocks was due to a tenfold increase in mandatory stock deposits required by the 'clearinghouse.'
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