The Robinhood stock ban has expanded to 50 high-flying Reddit names, placing trading restrictions on everything from GameStop (NYSE:GME) to Advanced Micro Devices (NASDAQ:AMD). With Robinhood bans stirring up anger and moving the market, what should you know now? And what are the 50 stocks on the restricted list?
Yesterday, Robinhood announced in a blog post that it would outright halt new purchases of GameStop and seven other equities. Angering celebrities and retail investors alike, the move ultimately resulted in a class-action lawsuit. Through it all, the company said its decision was to protect regular investors from losing too much money. However, many saw it instead as a way to protect short-selling hedge funds from further losses.
Today, those restrictions are continuing. As it stands, Robinhood has restricted trading in 50 different equities. Now, investors face aggregate limits on how many new shares they can accumulate. Here are some of the names on the list:
- American Airlines (NASDAQ:AAL) — one new share
- First Majestic Silver (NYSE:AG) — one new share
- AMC Entertainment (NYSE:AMC) — one new share
- Advanced Micro Devices (NASDAQ:AMD) — one new share
- BlackBerry (NYSE:BB) — one new share
- Bed, Bath & Beyond (NASDAQ:BBBY) — one new share
- Castor Maritime (NASDAQ:CTRM) — five new shares
- Express (NYSE:EXPR) — five new shares
- GameStop (NYSE:GME) — one new share
- Gran Tierra Energy (NYSEMKT:GTE) — five new shares
- Jaguar Health (NASDAQ:JAGX) — five new shares
- Koss (NASDAQ:KOSS) — one new share
- Moderna (NASDAQ:MRNA) — one new share
- Naked Brand (NASDAQ:NAKD) — five new shares
- The9 (NASDAQ:NCTY) — one new share
- Nokia (NYSE:NOK) — five new shares
- Rolls-Royce (OTCMKTS:RYCEY) — five new shares
- iShares Silver Trust (NYSEARCA:SLV) — one new share
- Sundial Growers (NASDAQ:SNDL) — five new shares
- Tootsie Roll (NYSE:TR) — one new share
- Trivago (NASDAQ:TRVG) — five new shares
- Workhorse (NASDAQ:WKHS) — one new share
- Qualtrics (NASDAQ:XM) — one new share
What to Know About the New Robinhood Stock Bans
So what do you really need to know about the new Robinhood bans?
Essentially, the trading platform has massively expanded its restrictions from the top names to a broad group of popular stocks. The new list goes from just GameStop and AMC Entertainment to Workhorse and even Churchill Capital IV (NASDAQ:CCIV), which many think will take Lucid Motors public.
Essentially, if you want to open a new position in one of these stocks, you can only add a set number of shares. Also, this is not a per-order limit, but instead, an aggregate limit that all customers face. Additionally, investors are not allowed to purchase fractional amounts of these equities, and they face restrictions on options trading.
According to Robinhood, these changes are due to ongoing market volatility. With a class-action lawsuit swirling and criticism loudly ringing, keep a close eye on this news. And as you look to the future, consider the benefits of decentralized finance stocks like these four picks.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.