If you’re “not into” the stock market or don’t understand it, this is still important if you like making money.
Yesterday (Jan. 28), potential investors woke up to really bad news. The apps Robinhood or TD Ameritrade wouldn’t let them trade certain stocks. The “certain stocks” included stocks that have created a buzz within the Wall Street Bets Reddit community, Hip Hop DX reports.
Ja Rule chimed in on the conversation via Twitter and gave some advice for buyers. Ja Rule, as well as other people with knowledge of the stock market, advised buyers to hold their position and not give in to the hedge funds.
Yo this is a fucking CRIME what @RobinhoodApp is doing DO NOT SELL!!! HOLD THE LINE… WTF 🤬
— Ja Rule (@jarule) January 28, 2021
They hedge fund guy shorted these stocks now we can’t buy them ppl start selling out of fear… we lose money they make money on the short… THIS IS A FUCKING CRIME!!!
— Ja Rule (@jarule) January 28, 2021
The article explains what’s happening in laymen’s terms. It says,
“A group of people on the Wall Street Bets Reddit page banded together to purchase GameStop stock and buy up the price in what’s known as a short squeeze, which hurts hedge funds and capital firms shorting the stock, who basically bet against a certain business since they believe it’s in decline.”
So then GameStock’s price was at $20 per share and the shot up to a peak of $347 per share on Jan. 27. People (the average person) wanted in on the rising stock and tried to purchase GameStop and other “Reddit”-selected stocks such as AMC and BlackBerry but were denied by apps such as Robin Hood who cited “market volatility,” the publication reports.
In light of current market volatility, we are restricting transactions for certain securities to position closing only, including $AMC and $GME. Read more here.https://t.co/CdJMjGAeFH
— Robinhood (@RobinhoodApp) January 28, 2021
Ja Rule spoke with TMZ about the situation. Ja feels Robinhood’s “blocking move” will cost them “big time.” Take a look:
Here’s another breakdown. It’s never too late to self educate yourself as well with all of the resources that are out there. Keep in mind, Ja Rule isn’t a certified financial advisor, so anything you do would be at your own risk.
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