GameStop Stock was Stuck in Transaction Limitation

GameStop stock was stuck in transaction limitation. GameStop stock fell for the first time in 5 days.

GameStop, the US based game, game console and electronics store, has been the highlight of the last couple of days. Despite high short selling positions, the company's shares, which rose rapidly with tips on a social media, fell yesterday as the trading platforms restricted purchases. GameStop, whose sales decreased during the coronavirus outbreak, was a stock in which hedge funds had a short selling position to a large extent. There were large purchases of shares thanks to the tips on the Wall Street claims shared on Reddit forum, which has more than 4 million members. With the suddenly skyrocketing GameStop stock, investors in short selling positions were forced to buy back their shares. In fact, the share increased even more with Tesla's founder Elon Musk sharing this on his Twitter account. The increase recorded since the beginning of the year in the shares, which had risen by 788 percent in just one week, increased to 2,460 at one time, while it was still at 928 percent at the closing of Thursday.   Platforms Restricted the Buying Transactions Investment platforms Robinhood and Interactive Brokers have temporarily restricted the purchase of GameStop shares. After the decision, GameStop stock closed yesterday with a 44 percent decrease after 5 days of increase and the company's market value lost about $ 11 billion. The daily loss in the stock increased up to 68 percent at one interface. While transactions were stopped 19 times due to high volatility, the record-breaking transaction volume dropped to about 55 million on Friday with 197 million. While sales were reflected in not-so-good stocks such as AMC, Blackberry, American Airlines, Express, Koss and Nokia; Robinhood customers took legal action against the platform. In a later statement by Robinhood, it was reported that as of today, it will allow limited purchases of some shares. With the announcement, GameStop shares started to rise again in futures. Sherrod Brown, chairman of the US Senate Banking Committee (SEC), said the following: “The people on Wall Street only care about rules when they are harmed. American workers have known for years that Wall Street's system is broken and they have been paying for it. It's time for the SEC and Congress to make sure that the economy works for everyone, not just Wall Street.”     Source: Bloomberg HT