Did you wonder why Robinhood had suspended trading on January 28th, 2021 throughout the day. Robinhood only allowed clients to sell positions, not open new ones, in certain securities, raised margin requirements, and even said it would close out some positions automatically if the client was at risk of not having the necessary collateral.
Robinhood buys complete blocks of stocks as investors due when they trade through a traditional brokerage. Robinhood then sells their shares as slices or percentages to investors that cannot afford to buy complete shares. This type of model is becoming more and more prevalent today to entice more people to invest in the stock market that normally would not because they couldn’t afford to buy full shares or blocks as is normally required.
Robinhood has experienced an unprecedented high volume of trading this week as Reddit-reading retail traders attempt a takeover of certain highly shorted stocks. Robinhood, which has to deposit money to a clearinghouse based on the volume of trades, said it restricted trading was because the firm was unable to meet the deposit requirements that it was anticipating. The requirements go up when volatility goes up in case a large chunk of investors lose out on an options trade.
What should Robinhood have done prior to shutting down trade and upsetting many investors? Do you think they learned their lesson?
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Robinhood definitely helped a lot of investors but the thing they could of done was increase the prices of the stocks they were selling. They’re losing over 20% of the money they invest with the investors investing in them. Have a cap on many shares and stocks one investor can buy. They learned their lesson and unfortunately it was to little to late. They shut down trades which will cause many investors to not trust the company
I think before shut down the trades i personally would have put out a warning letting people know why and at what time because doing it so randomly and not giving a proper explanation leaves people wondering and people tend to think the worst of all situations. I think they have because most rich people are smart enough to not make the same mistake twice.
The company Robinhood has gained a lot of traction by now and the company may not have expected all the buzz all together. Many are looking at the future of trading and Robinhood has developed a amazing platform for people to begin trading. Trading can be confusing but giving people a way to invest easier is revolutionary. This little event can really effect the company’s reputation.
I don’t think they should have done this at all. No limits, nothing. When people get into Robinhood, they know what they are doing. They don’t need to be “saved”. What’s interesting is that companies have been “shorting” these stocks, and the people who gain the most by having people sell off stocks and not being to buy more are these big hedge funds that shorted these stocks. I think RobinHood has learned its lesson, due to the class action lawsuit headed for them, and potential review by congress.
Robinhood definitely helped a lot of investors but the thing they could of done was increase the prices of the stocks they were selling. I think before shut down the trades i personally would have put out a warning letting people know why and at what time because doing it so randomly and not giving a proper explanation leaves people wondering and people tend to think the worst of all situations. I still think it’s crazy that a group of reddit people did all this, it’s crazy what people can do in this world.
What should Robinhood have done prior to shutting down trade and upsetting many investors?
Getting more information regarding the matter and see if it’s worth. But Robin Hood should’ve been more careful in what they were doing so it wouldn’t get out of hand. If they would’ve done that it would’ve been a different story in a lot different in the end.
I believe Robin Hood was a good company but its demise ultimately occurred because of its lack of communication with investors when shutting down trades. They were losing out and its unfortunate that it had to happen this way
This whole situation with GameStop has lost some investors a lot of money. But I don’t see why robin hood put a limit and didn’t allow people to buy. I feel like people should’ve been able to buy if that’s what they wanted to do, I don’t think they should regulate that.
I think this situation is weird because GameStop had lost some investors and a lot of money but Robin Hood also could’ve gave a warning to People letting them know when they were not gonna let them buy stocks any more which probably made a lot of people mad or confused
What should Robinhood have done prior to shutting down trade and upsetting many investors? Do you think they learned their lesson?
In my opinion, Robinhood should have advised people that they were going to be shutting down trade before making the decision on their own. They should have let investors make their own decisions before making one for themselves. I do think they have learned their lessons, but I think they have a long way to go.