GameStop shares surge after Robinhood eases trading restrictions

CBS (Communist Broadcasting System) ^ | January 29, 2021 | Aimee Picchi

[Navy Patriot]

GameStop shares are surging again ahead of U.S. markets opening on Friday as online brokerage Robinhood eases restrictions on the purchase of certain shares. Robinhood had been faced with threats of a boycott from some Reddit users at the Wallstreetbets forum, who had bid up GameStop's shares prior to the trading ban.

...

"Robinhood could have changed the rules, but a complete restriction on trading was wrong and that is why we are seeing AOC and Ted Cruz on the same side of that argument," noted Edward Moya, senior market analyst at OANDA, in a Friday research note.

Already, the turmoil has sparked at least one lawsuit, with Rosen Law Firm saying on Thursday that it is "investigating potential securities claims on behalf of those who lost money" using Robinhood "resulting from allegations that Robinhood may have engaged in illegal market manipulation."

[BipolarBob]

Reddit ,GameStop ,OANDA and Robinhood must be some kind of code

I'll trade you a decoder ring for 10 shares of GME stock.

[Alberta's Child]

Suppose you buy a cup of coffee tomorrow morning for $1. Then the store owner uses that $1 to get a haircut in the afternoon. Then the barber uses that $1 to buy a new comb at the pharmacy.

At the end of the day you have $3 worth of transactions using the same one dollar. The transactions are 300% of the available currency.

Is this supposed to be a problem?

[zeugma]

As of this post GME is at 340

[Alberta's Child]

I see a lot of people upset over this volatility ...

And I see a lot of people who really don’t give a flaming sh!t. Who cares? The ones who are most upset are those who are finding themselves on the losing side of a game they’re used to rigging in their own favor. Screw them.

[bigdaddy45]

The point is, illegal, unethical or none of the above, the hedge funds took a huge risk, and are now getting their heads handed to them by a bunch of rookies and amateurs. Who doesn’t love a story like that?

[dfwgator]

It’s called “risk” for a reason.

[drdirt333]

T D Ameritrade deleted GME from the trading platform. Poof gone. Disappeared. At 12:45 pm EST. No sales no purchases.
I dont have a position, but if Indid Id be frozen out.
Whoa. This is serious.
They have the right to do that according yo their agreement I signed, but sheesh. This is serious

[mewzilla]

REDPILLED MEDIA EXCLUSIVE: Jen Psaki’s Brother IS PORTFOLIO MANGER AT CITADEL, The Company That Owns Robinhood! He Was Director at Both Goldman Sachs and Barclays and VP of Lehman Brothers!

[bigdaddy45]

No sales? If you’re on TD Ameritrade and you have GME you can’t SELL it?

[drdirt333]

I dont know. I had GME on my watch list. It flat disappeared.
Theres no way. I would test to see if I can buy or sell, Im an observer for now. Buying at 330 is not my cup of tea. Lol. I dont want to throw away money

[Alberta's Child]

In defense of TD, the is is exactly what happens when government regulators force private industry to serve as the enforcement officials for private transactions.

[BipolarBob]

Is this supposed to be a problem?

That's a faulty syllogism and reflects nothing of this situation. What you presented is normal commerce. What is going on here is borrowing something that will have to be repaid back at whatever the price may be. That is something quite different. It is a wager that has infinite downside. And then you have external market forces trying to restrict trading to further complicate things.

[BipolarBob]

And yet I received an email yesterday from Thomas W Butch President, TD Ameritrade Retail stating " These restrictions will not prevent clients from buy and sell transactions. ". This was a response to my angry email about restrictions on GME stock.

[Alberta's Child]

Then do the process in reverse. The analogy is the same. You lend your friend who owns the coffee store $1. He lends his barber friend $1. The barber lends the pharmacist $1 to buy a new light bulb from you.

[BipolarBob]

Also I just logged on TDAmer and GME stock is still up as it was this morning when I first logged on.

[BipolarBob]

The analogy is the same.

The analogy is NOT the same. If you loan a person a dollar then all they need to repay is a dollar. There is no risk of it being $100 to repay the loan.

[minnesota_bound]

#16 See Hollywood accounting.... : )
Or the movie “The Producers”.
They over promise investors and deliver nothing.
Others would be jailed as it is a ponzi scheme.

[Alberta's Child]

If both parties were aware of that risk before the deal was signed, then what’s the problem?

Keep in mind that the guy who has to pay $100 to repay a $1 loan has spent the last ten years repaying $1 loans for 50 cents (or less). So now he’s going to complain that he’s getting screwed?

Cry me a river.

[minnesota_bound]

GameStop chart. Click on the 1 month one. Zooooom!
https://www.google.com/finance/quote/GME:NYSE?sa=X&ved=2ahUKEwi3p8KU4MHuAhXZJzQIHRkEBPcQ3ecFMAB6BAgBEBE

[precisionshootist]

“ There’s nothing illicit about shorting more than 100% of the shares in a company subject to short sales. In a frenzy like this many of them are changing hands multiple times even within a few hours.”

I have to call bs on that. How do you sell shares that don’t exist? If you or I short a stock we are borrowing actual shares from an entity that owns them. So you are saying hedge funds don’t need to borrow shares? They can just pull a number out of the air?