Robinhood narrows stock trade restrictions

SEC, Congress probing GameStop chaos, online platforms’ trading freezes

Portfolio wealth advisor CIO Lee Munson and former congressional investigator Sam Dewey join ‘The Evening Edit’

Robinhood has narrowed its stock trade restrictions to eight companies on Sunday, including GameStop, Koss Corporation, AMC Entertainment Holdings, Express Inc., Naked Brands Group, Genius Brands International, BlackBerry Limited, and Nokia Corp.

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According to the company's support page, investors will be limited to 10 shares and 10 options contracts of AMC, 700 shares and 700 options contracts of BlackBerry, 20 shares and 20 options contracts of Express Inc., 1 share and 5 options contacts of GameStop, 600 shares and 600 options contracts of Genius Brands International, 2 shares of Koss Corp., 600 shares of Naked Brands Group and 2,000 shares and 1000 options contracts of Nokia Corp.

Photo courtesy of Robinhood

The new restrictions, which are aggregate limits for each security and not per-order limits, include shares and options contracts that an investor already holds. These limits may be subject to change throughout the day.

Robninhood notes that investors who already hold a greater number shares or contracts than the limits listed above will not have their positions sold or closed. However, they will be unable to open more positions of the securities unless they sell enough of their holdings to be below the respective limit.

Investors will also be unable to open new fractional shares but may open new whole share positions according to the limits listed. Recurring investments for the listed securities will also be skipped until the restrictions are lifted.

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