Shares of GameStop, which were soaring in premarket trading before Robinhood’s announcement, closed down by 40%. Shares of AMC Entertainment and Bed Bath & Beyond also lost value without the army of rookie investors inflating share prices in an effort to stick it to hedge funds betting against the stocks.
Robinhood’s decision was met with backlash from customers to politicians to other investors. The Reddit crew took to Twitter to express their outrage.
This is an unfolding story. After the closing bell, Robinhood decided to allow limited buying of these restricted securities. You can read the latest here.
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