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Robin Hood lifts trading restrictions after raising $ 1 billion from investors

January 29 – The Robinhood Stock Trading App raised $ 1 billion from investors overnight on Thursday, the day after it stopped trading GameStop and other stocks due to concerns about market volatility.

Free trading app Resume some trading Friday after also using a $ 500 million credit line to meet the margin requirements of Depository Trust & Clearing Corporation, which holds collateral for a large share purchase of Robin Hood.

“By using the credit line that we always do as part of our normal daily work, we can get more capital to deposit in the clearinghouse and ideally make more investment with less restrictions. Can be. ā€¯Robinhood CEO Vladimir Tenev Told CNBC..

Users via Robin Hood pushed up the stock prices of GameStop and other companies on Thursday, and the app stopped trading.

The company said GameStop’s stock fluctuated between $ 483 and $ 112 and needed to provide collateral to cover volatility. Thursday Before trading is restricted.

This limitation allowed users to sell their shares but not buy new ones. Robin Hood said the deal was restricted because it failed to meet the legal deposit requirements predicted by the surge in trade.

A stake in video game retailer GameStop was trading for less than $ 18 per share earlier this month.

GameStop and AMC shares rose sharply in pre-market trading on Friday in anticipation of Robin Hood’s easing restrictions. Just before the market opened, GameStop shares were selling for about $ 193.

Robin Hood, a private company, has been fined $ 65 million by the US Securities and Exchange Commission. last month For customers who are misleading about how it makes money.



Robin Hood lifts trading restrictions after raising $ 1 billion from investors

Source link Robin Hood lifts trading restrictions after raising $ 1 billion from investors

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