Robinhood users were up in arms recently when the company made the unpopular decision to restrict trading on several stocks, including GameStop (NYSE: GME) , AMC Entertainment Holdings (NYSE: AMC) , Express (NYSE: EXPR) , Naked Brand Group (NASDAQ: NAKD) , and Nokia (NYSE: NOK) . The move came as the result of rising capital requirements from the Depository Trust & Clearing Corporation, which provides clearing and settlement services for stock trades.
On this clip from Motley Fool Live recorded on Jan. 28 , "The Wrap" host Jason Hall and Fool.com contributors Danny Vena and Dan Caplinger explained how Robinhood is allowed to make such a move.
For further details see:
How Can Robinhood Restrict Trading on Some Stocks?