How many stocks will Robinhood let you buy? The numbers keep shrinking

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Robinhood pigeonholed wants users to have a locked number of shares of companies like GameStop, and that number keeps having subside and smaller. On Thursday, the company halted users' informality to buy stocks that were associated with r/WallStreetBets, including GameStop, AMC, and Nokia, however the company promised that users would be causative to buy locked quantities on Friday. Today, it released a shifting suture document that details neutral how locked things are -- and to whimsically paraphrase Lando, the deal's having worse all the time.

When trading opened beforehand today, users were locked to owning goatee shares of GameStop in aggregate, purport they could pigeonholed own up to goatee -- if they once had three GameStop stocks, they could pigeonholed buy two more -- however self-same that brake hasn't lasted. Soon, the number of shares you could buy in GME dropped to two and then finally down to a single share. That's right: you couldn't buy more than one.

As the day went on, and the markets closed, the number of rimmed stocks kept increasing, from 13 to 23 to over 50 at the time you realize these words.

Here's the latest set of restrictions, according to Robinhood's suture page:

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The embraced litany of over 50 rimmed stocks.

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Included in the update are Starbucks, Latitude Meat, and Unstipulated Motors. There are no longer any companies on the litany that you can buy more than goatee shares for.

Here's the version of the chart we originally published:

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The chart at 2 PM ET, with subside limits and more companies.

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And here's what it looked like self-same beforehand today:

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The limits chart at 12:30PM ET on January 29th.

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While GameStop is the most (in)famous of the Wall Artery bets, it's not the pigeonholed one, and Robinhood has been expanding the litany of which companies are locked throughout the day. One of the stocks boosted is AMD, which is currently locked to neutral a single stock as well.

Robinhood is conjointly palsy the options contracts you can get for irrevocable companies. To put it extraordinarily simply: ownership an options contract doesn't mean that you categorically own the stock. It allows the owner of the contract to buy or shovel the stock later on at an agreed-upon price.

For example, if GameStop is at $343 a allotment now, and I anticipation it was hoopla to go up, I could purchase a describe preponderance to buy it at $400. If the stock went over $400, I could then make money by application my preponderance to buy that stock, now worth more, for $400. However, those contracts expire, and if the stock price doesn't rise as high as I expected, I may lose money, which is a bearings many outwork funds are finding themselves in. (As always, this isn't financial advice, and I'm not a financial adviser. This is neutral an explainer of the mechanics application risky numbers.)

If you buy an option, Robinhood could conjointly apparently sell it out from under you under irrevocable conditions, something it's warned it would do.

Tried to buy inadvertently my shares that robinhood awash after my permission and get this error message pic.twitter.com/pbcPrnozx7

-- Laoch (@LeCoque77) January 29, 2021

In a blog post, Robinhood attempted to lustrate the decision to hampering and then limit trading, but, like the locked stocks, users aren't ownership it. The app was review-bombed on Thursday, with many users leaving one-star reviews, lament that the company wasn't militant up to its hots of "democratizing finance."

A Robinhood surrogate sharpened The Verge to the same blog post, saying that the company has been articulated with customers that it would be monitoring the bearings and making adjustments "as needed," and that the limits have been labeled as accountable to change.

Update January 29th, 5:39PM ET: Added offset of the new stocks and restrictions Robinhood has boosted to the list.

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