Right now, there is a trading war between Reddit-charged day traders and short-sellers who are betting against GameStop. Short-sellers already lost billions of dollars from their bets against the company’s stock.
The stock price of GameStop is up again by more than 67% to $325 per share on Friday.
Reasons behind Robinhood move
Since 2013, Robinhood has worked on making investing in stocks and other assets more accessible. However, the complicated process behind each trade made it harder for the company to control the growing number of trades. In return, customers felt betrayed by Robinhood’s decision to halt trading on Thursday — the company suggests that customers are not aware of the hurdles that the company is facing.
Representative Alexandria Ocasio-Cortez described the move as unacceptable. She called for a congressional investigation into the matter.
On the other hand, the Securities and Exchange Commission (SEC) said that it would review Robinhood’s actions and other brokerage firms that restricted the trading this week.
