Re:Robinhood is limiting purchases of stocks: AMC, Blackberr...
by vvG94KbDUtRa on Thursday January 28, 2021 @08:53PM
(#25952606)
retail investors are a very small minority of short positions. hedge funds do most of the shorting in the market
The risk to a company that processes trades is that many of these retail investors accounts would turn negative and the company that processes the trades would take giant losses they did not plan for. To prevent that, they stop processing trades.