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Friday, February 05 2021 9:20 AM, EST
Robinhood lifts trading freeze on all stocks after wild week
United Press International “US Top News”
Investing app Robinhood on Friday lifted restrictions for trading all stocks, including GameStop and AMC Entertainment, after a surge in transactions last week led to a volatile market revolt over the practice of “shorting” stocks.
Robinhood suspended trading more than a week ago when users from a social media Reddit group bought up shares of GameStop, AMC and other companies, causing major losses for hedge funds that were partly staked on betting against, or shorting, those stocks.
Robinhood then placed limits on app activity in an effort to stabilize the market.
Friday, the investing app lifted those suspensions for all trading activities, including GameStop.
“There are currently no temporary limits to increasing your positions,” a message on Robinhood’s website said Friday.
The trading restrictions had only allowed users to sell shares, but not buy new ones. At the time, Robinhood said it limited trading because it wasn’t able to meet legal deposit requirements that it projected from the abrupt spike in transactions.
The company has since raised billions from investors.
Janet Yellen, President Joe Biden treasury secretary, met on Thursday with officials from the Securities and Exchange Commission, Federal Reserve and other fiscal agencies to examine the impact of last week’s trade frenzy.
“The regulators believe the core infrastructure was resilient during high volatility and heavy trading volume and agree on the importance of the SEC releasing a timely study of the events,” the Treasury Department said after the meeting.
“We really need to make sure that our financial markets are functioning properly, efficiently, and that investors are protected,” Yellen, the former head of the Federal Reserve, told Good Morning America.
“[We] need to understand deeply what happened before we go to action, but certainly we’re looking carefully at these events.”
Thursday, February 04 2021 8:16 AM, EST
Why AMC Is On My Watch List Now
Baystreet.ca “Standard Equities Feed”
Movie theatre chain AMC Entertainment (NYSE:AMC) has seen its shares go on a wild ride recently. An ongoing long-short dispute between a group of retail investors on the social media platform Redditt attempting to short squeeze a number of highly shorted U.S. stocks including AMC are trying to make life difficult for short-oriented hedge funds. This movement started out on the Reddit “wallstreetbets” forum, and has since gone viral.
The extent to which this movement can continue remains a topic of debate. AMCs stock has been highly volatile, and it appears that a short squeeze may not be as likely as with Gamestop Corp. (NYSE:GME), the other primary target of these retail investors. This is because AMC has a lower short interest, and the company has recently been raising money at its increasingly higher stock price in recent days.
That said, if enough retail buyers continue to step into the market in a big way, theres really no telling what could happen. Theres the potential this stock could go parabolic. Theres also the potential AMC could go back to trading around $1 per share. Investors looking to get in on this trade need to realize at this point in time, these shares are purely speculative.
This is a stock which has frenzied “mob-like” buying, so betting on the downside is risky.
Similarly, this stock is highly shorted for a reason, so to think this stock could go to Gamestop-like levels might not be realistic.
Invest wisely, my friends.
5 FEB 2021 – Form 8-K http://archive.fast-edgar.com/20210205/A3BZSQ2C8C22NZZ2222O2ZZZORGTZ2T2NV32/
2 FEB 2021 – Form SC 13G http://archive.fast-edgar.com/20210202/A2BZRG22Y222UZZZ24222ZZZWHHQZ292Z932/