Restricted Stocks on Robinhood Amid the WallStreetBets Controversy

As the investment platform Robinhood continues to navigate the fallout from the WallStreetBets controversy, it has made several moves in an effort to remain solvent and keep everyone happy (although some would argue that it isn't doing a great job of either at this point). Most recently, Robinhood has implemented restrictions on certain stocks to try and curb the subreddit’s short squeeze tactics.

Investors hoping to make moves during this volatile time might wonder what stocks are restricted on Robinhood. The list of restricted stocks — and the specific restrictions placed upon them — will change over time. For now, here’s what we know.

In the midst of WallStreetBets’ short squeeze, Robinhood quickly made the call to restrict trading on several highly volatile securities. Initially, the company implemented restrictions on 50 different stocks. Now, the list is quite a bit shorter, but investors might be disappointed by the stocks that are still on it. Here’s the list of stocks that are currently restricted on Robinhood:

• AMC Entertainment, which trades on the NYSE under the ticker symbol “AMC”
• BlackBerry Ltd, which trades on the NYSE under the ticker symbol “BB”
• Express, Inc., which trades on the NYSE under the ticker symbol “EXPR”
• GameStop Corp., which trades on the NYSE under the ticker symbol “GME”
• Genius Brands International Inc, which trades on the Nasdaq under the ticker symbol “GNUS”

• Koss Corporation, which trades on the Nasdaq under the ticker symbol “KOSS”
• Naked Brand Group Ltd, which trades on the Nasdaq under the ticker symbol “NAKD”
• Nokia Oyj, which trades on the NYSE under the ticker symbol “NOK”

It probably won’t surprise anyone to see that the restricted stocks are, in many cases, exactly the securities that retail investors might be interested in right about now. Since those stocks are especially volatile at this time, they’re the ones that have earned the title of “restricted” — but it probably won’t be that way forever!

According to Robinhood’s Help Center, there’s a maximum number of shares and options contracts to which investors can increase their positions. Those numbers are reflective of aggregate limits and not the limits placed on each separate order. It should also be noted that the limits apply to stocks investors already hold. 

And just for good measure, those limits may change throughout the day (or over the course of several days). It’s probably best to keep your eye on that chart before trying to make any changes to your portfolio regarding the more volatile securities.

The good news is that if your current holdings exceed the limits, your positions won't be sold or closed. Then again, you also won’t be able to purchase any additional securities from the above list until and unless you sell enough to be below the respective limits.

As the situation continues to develop, Robinhood will probably put additional limits in place and (hopefully!) continue to relax restrictions on some other securities. Investors can expect the situation to develop and should keep an eye on the headlines!