<p><img src="https://static4.businessinsider.com/image/5eeb981b3ad86105ac5ba3fc-1024/gettyimages-1157449079.jpg" border="0" alt="Robinhood app phone screen" data-mce-source="Rafael Henrique/SOPA Images/LightRocket via Getty Images"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Rep. Alexandria Ocasio-Cortez of New York called the stock trading platform Robinhood blocking purchases of GameStop stock "unacceptable" and called for the House Financial Services Committee to investigate if necessary.</p><p>Trading platforms including the popular app Robinhood, Ameritrade, and Fidelity have halted users from purchasing shares of certain companies that Reddit users have been buying up en masse.</p><p>Over the course of the month of January, investors and members of the popular Reddit forum r/WallStreetBetswhich has more than 2 million usershave pushed shares higher for retailers GameStop, AMC, Nokia, and Blackberry. All of the stocks were being heavily shorted, or bet against, by major hedge funds prior to the activity.</p><p><em><strong>Read more: </strong></em><em><a href="https://www.businessinsider.com/gamestop-shareholder-3-billion-richer-one-week-rally-reddit-chewy-2021-1" data-analytics-position="11" data-analytics-module="">One chart shows how 3 GameStop shareholders gained nearly $4 billion in a week</a></em></p><p>The Redditors are making the trades have brought in big money for themselves and caused headaches for the hedge funds who shorted GameStop shares, <a href="https://www.businessinsider.com/the-gamestop-wallstreetbets-reddit-thing-isnt-funny-its-stupid-2021-1">but have been accused by critics</a> of manipulating the market and creating a bubble that is bound to burst.</p><div><blockquote class="twitter-tweet" data-lang="en" data-cards="" data-conversation=""><p lang="en" dir="ltr">This is unacceptable.<br><br>We now need to know more about <a href="https://twitter.com/RobinhoodApp'ref_src=twsrc%5Etfw">@RobinhoodApp</a>s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.<br><br>As a member of the Financial Services Cmte, Id support a hearing if necessary. <a href="https://t.co/4Qyrolgzyt">https://t.co/4Qyrolgzyt</a></p> Alexandria Ocasio-Cortez (@AOC) <a href="https://twitter.com/mims/statuses/1354830697459032066'ref_src=twsrc%5Etfw">January 28, 2021</a></blockquote><script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script></div><p></p><p>"Inquiries into freezes should not be limited solely to Robinhood," <a href="https://twitter.com/AOC/status/1354833285386543105">Ocasio-Cortez added</a>. "This is a serious matter. Committee investigators should examine any retail services freezing stock purchases in the course of potential investigationsespecially those allowing sales, but freezing purchases."</p><p>The move by major trading platforms to block purchases has drawn sharp criticism from figures from around the financial world and across the political spectrum. Other critics include <a href="https://twitter.com/stoolpresidente/status/1354829252193968128">Barstool Sports founder and CEO Dave Portnoy,</a> Donald Trump Jr., and <a href="https://twitter.com/tedcruz/status/1354833603943931905's=21">Republican Sen. Ted Cruz</a>, who tweeted that he "fully agree[d]" with Ocasio-Cortez's criticism of Robinhood.</p><p>On Wednesday, both Ocasio-Cortez and Sen. Elizabeth Warrena leading expert on consumer protection law who has long advocated for stricter restrictions on the financial industry and Wall Street<a href="https://www.businessinsider.com/gamestop-warren-aoc-slam-wall-street-market-like-a-casino-2021-1">called out what they saw as the hypocrisy</a> of major Wall Street critics of the Reddit traders.</p><p><a href="https://www.businessinsider.com/unacceptable-aoc-calls-out-robinhood-for-blocking-gamestop-purchase-2021-1#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/coronavirus-myths-debunked-wuhan-china-2020-2">Epidemiologists debunk 13 coronavirus myths</a></p>
Click here to read full news..
