The Robinhood restrictions continue into Monday, with eight popular Reddit stocks still on the list. What names still face restrictions? And what else do you need to know?
For unfamiliar investors, these Robinhood restrictions follow outright bans on stocks like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC). As r/WallStreetBets and a short squeeze dominated the market, the trading platform enforced bans to combat “market volatility.” Then, Robinhood set restrictions on 50 stocks heading into the weekend, limiting how many new positions investors could open.
Today, Robinhood is scaling back that list, but eight stocks still face restrictions. Here are the names:
- AMC Entertainment (NYSE:AMC), 10 new shares
- BlackBerry (NYSE:BB), 700 new shares
- Express (NYSE:EXPR), 20 new shares
- GameStop (NYSE:GME), one new share
- Genius Brands (NASDAQ:GNUS), 600 new shares
- Koss (NASDAQ:KOSS), two new shares
- Naked Brand (NASDAQ:NAKD), 600 new shares
- Nokia (NYSE:NOK), 2,000 new shares
What to Know About the Robinhood Restrictions Update
So what do you really need to know about these Robinhood restrictions?
Well, at surface level at least, these restrictions are much lighter than those from Friday. For instance, now you can acquire 2,000 new shares of Nokia. On Friday, that limit was five new shares. Plus, Robinhood has knocked several other popular names like Jaguar Health (NASDAQ:JAGX), Sundial Growers (NASDAQ:SNDL) and Churchill Capital IV (NYSE:CCIV) off the list.
However, for GameStop enthusiasts, opportunity remains quite limited. Investors can still only add one new position in GME stock. This comes as shares trip slightly in pre-market trading but remain steady above $300.
Investors should also note that as a result of these restrictions, they can not purchase fractional quantities of the eight stocks, and there are also limits on new options contracts. Additionally, Robinhood is now considering how many shares of these equities you already own. For example, if you already own 2,000 shares of Nokia, the company will not close out your position. However, you will not be able to acquire new shares.
Keep an eye on this news. As InvestorPlace Markets Analyst Tom Yeung wrote over the weekend, the r/WallStreetBets phenomenon has left its mark on Wall Street. Now we just need to see where it goes next.
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.