Robinhood Financial: Difference between revisions

Line 7:

==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>https://newsroom.aboutrobinhood.com/keeping-customers-informed-through-market-volatility/</ref> including [[GameStop]],<ref>https://www.cnbc.com/2021/01/28/robinhood-interactive-brokers-restrict-trading-in-gamestop-s.html</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>https://www.cnbc.com/2021/01/28/interactive-brokers-restricted-gamestop-trading-to-protect-the-market-says-chairman-peterffy.html</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>https://www.cnbc.com/2021/01/28/robinhood-will-allow-limited-buying-of-restricted-securities-friday-gamestop-jumps-after-hours.html</ref>

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.

@@ Line 7: / Line 7: @@
 ==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>https://newsroom.aboutrobinhood.com/keeping-customers-informed-through-market-volatility/</ref> including [[GameStop]],<ref>https://www.cnbc.com/2021/01/28/robinhood-interactive-brokers-restrict-trading-in-gamestop-s.html</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>https://www.cnbc.com/2021/01/28/interactive-brokers-restricted-gamestop-trading-to-protect-the-market-says-chairman-peterffy.html</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>https://www.cnbc.com/2021/01/28/robinhood-will-allow-limited-buying-of-restricted-securities-friday-gamestop-jumps-after-hours.html</ref>
+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.