Robinhood Financial: Difference between revisions
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==Public sphere== | ==Public sphere== | ||
===January 2021 restrictions on customer trading=== | ===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. | 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. | ||
Revision as of 10:21, 5 April 2025
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| Basic information | |
|---|---|
| Founded | 2012 |
| Legal structure | 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
January 2021 restrictions on customer trading
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
- ↑ "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)