Robinhood Financial: Difference between revisions
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=== | |Name=Robinhood Financial, LLC|Type=Subsidiary|Founded=2012|Industry=Financial Services|Official Website=http://robinhood.com/|Logo=Robinhood (company) logo.svg}} | ||
'''[[wikipedia:Robinhood_Markets|Robinhood Financial, LLC]],''' is a wholly-owned subsidiary of [[wikipedia:Robinhood_Markets|Robinhood Markets, Inc]]. The US-based company provides brokerage and related financial services. | |||
Customers | ==Public sphere== | ||
===January 2021 restrictions on customer trading=== | |||
On January 28, 2021, Robinhood systems restricted customer trading in certain securities for companies with heightened stock volatility,<ref>{{Cite web |date=28 Jan 2021 |title=Keeping Customers Informed Through Market Volatility |url=https://newsroom.aboutrobinhood.com/keeping-customers-informed-through-market-volatility/ |url-status=live |access-date=5 Apr 2025 |website=[[Robinhood]]}}</ref> including [[GameStop]],<ref>{{Cite web |last=Fitzgerald |first=Maggie |date=28 Jan 2021 |title=Robinhood restricts trading in GameStop, other names involved in frenzy |url=https://www.cnbc.com/2021/01/28/robinhood-interactive-brokers-restrict-trading-in-gamestop-s.html |url-status=live |access-date=5 Apr 2025 |website=CNBC}}</ref> AMC Entertainment, and Bed Bath and Beyond. [[CNBC]] reported that the brokerage firm [[Interactive Brokers|Interactive Brokers (IB)]] also imposed trading restrictions on the same day.<ref>{{Cite web |last=Fitzgerald |first=Maggie |date=28 Jan 2021 |title=Interactive Brokers restricted GameStop trading to protect the market, says Chairman Peterffy |url=https://www.cnbc.com/2021/01/28/interactive-brokers-restricted-gamestop-trading-to-protect-the-market-says-chairman-peterffy.html |url-status=live |access-date=5 Apr 2025 |website=CNBC}}</ref> Additionally, [[CNBC]] noted that other brokerages, such as [[TD Ameritrade]] and [[Charles Schwab]], had increased margin requirements the day before—a move described as less 'drastic' compared to outright trading halts.<ref>{{Cite web |last=Stevens |first=Pippa |date=28 Jan 2021 |title=GameStop shares jump 68% on Friday, bringing gains for the week to 400% |url=https://www.cnbc.com/2021/01/28/robinhood-will-allow-limited-buying-of-restricted-securities-friday-gamestop-jumps-after-hours.html |url-status=live |access-date=5 Apr 2025 |website=CNBC}}</ref> | |||
Customers should be aware that brokerages, including Robinhood, may take similar actions in the future. This poses a risk of economic harm, as investors could be artificially prevented from entering or executing trades during critical market movements. | |||
== References == | ==References== | ||
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[[Category:Robinhood Financial]] | |||
[[Category:Retroactively amended purchase]] | |||
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Latest revision as of 10:21, 5 April 2025
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Robinhood Financial
_logo.svg){kind=logo}
| Basic information | |
|---|---|
| Founded | 2012 |
| Type | Subsidiary |
| Industry | Financial Services |
| Official website | http://robinhood.com/ |
Robinhood Financial, LLC, is a wholly-owned subsidiary of Robinhood Markets, Inc. The US-based company provides brokerage and related financial services.
Public sphere[edit | edit source]
January 2021 restrictions on customer trading[edit | edit source]
On January 28, 2021, Robinhood systems restricted customer trading in certain securities for companies with heightened stock volatility,[1] including GameStop,[2] AMC Entertainment, and Bed Bath and Beyond. CNBC reported that the brokerage firm Interactive Brokers (IB) also imposed trading restrictions on the same day.[3] Additionally, CNBC noted that other brokerages, such as TD Ameritrade and Charles Schwab, had increased margin requirements the day before—a move described as less 'drastic' compared to outright trading halts.[4]
Customers should be aware that brokerages, including Robinhood, may take similar actions in the future. This poses a risk of economic harm, as investors could be artificially prevented from entering or executing trades during critical market movements.
References[edit | edit source]
- ↑ "Keeping Customers Informed Through Market Volatility". Robinhood. 28 Jan 2021. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ Fitzgerald, Maggie (28 Jan 2021). "Robinhood restricts trading in GameStop, other names involved in frenzy". CNBC. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ Fitzgerald, Maggie (28 Jan 2021). "Interactive Brokers restricted GameStop trading to protect the market, says Chairman Peterffy". CNBC. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ Stevens, Pippa (28 Jan 2021). "GameStop shares jump 68% on Friday, bringing gains for the week to 400%". CNBC. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link)