Robinhood removed GameStop, AMC, BlackBerry, and Nokia from its trading platform on Thursday, leaving investors unable to buy the highly volatile stocks.
The discount brokerage informed clients they can close out positions in the affected stocks but cannot purchase additional shares, according to numerous screenshots shared on Twitter. The move came before markets opened on Thursday.
The stocks that were removed have all surged in recent trading sessions as day-traders united in Reddit forums like WallStreetBets frenetically buy the names to push their share prices higher. The phenomenon has already fueled massive losses for numerous hedge funds and caught the attention of regulators and the White House.
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.
(Source: Business Insider)
Join the official YWN WhatsApp status
2 Responses
Meshuga!
The point is that hedge-funds (along with their stock-broker and media friends) cheat the common owner – and a few common investors caught on to to their scheme and fought back. Going back to at least March (2020), various “rich” and connected people (apparently expecting Trump to lose thanks to COVID) spread panic among (the small) shareholders with on-the-air hysteric dooms-day predictions of market collapse of hotels and such things. As the panicked (small) shareholders sold – driving the prices down – the very same “rich” connected doomsayers bought up the stock and bargain prices.
As these “rich’ guys became more bold, they repeated their tactic, to the point where a hedge-fund went “short” as follows – they took money now for a promise to pay it back with a certain amount of stock shares in the near future. But, as it turns out, they promised to pay back what turned out to be 120% (that is not a typo – it is more than 100%) of the actual available stock on the market. Some “small investors” caught on to this and banded together to buy the stock, thus driving the share price up and up and up which would cost the hedge-find cheats to lose many billions and even go bankrupt.
So the stock brokers are the ones who protected their hedge-fund friends – they slammed down on the little investor to ban them from buying any more of the stock (the hedge-fund itself had ways of buying through other means not available to the “little guy”) and the stock brokers allowed the “little guy” to ONLY sell. so as to drive the price back down to the advantage of the hedge-fund.
And the so-called mainstream media (and Biden’s Injustice Department) are trying to cover up for the hedge-fund cheats and they push the narrative – or give the impression – that it was these little investor who had manipulated the stock market.
So every “outsider” to these tactics – all the way from AOC herself (at least until the establishment “gets to her”) to Donald Trump’s adult son (and at what other time have two ever agreed on anything!) – have called for the government to investigate these hedge-fund and stock broker cheats.