Robinhood Financial: Difference between revisions

Robinhood Financial
Basic information
Founded	2012
Legal structure	Subsidiary
Industry	Financial Services
Official website	http://robinhood.com/

← Older edit Newer edit →

VisualWikitext

Revision as of 10:14, 11 February 2025

❗Article Status Notice: This Article is a stub

This article is underdeveloped, and needs additional work to meet the wiki's Content Guidelines and be in line with our Mission Statement for comprehensive coverage of consumer protection issues. Learn more ▼

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

[1] ttps://newsroom.aboutrobinhood.com/keeping-customers-informed-through-market-volatility/

[2] ttps://www.cnbc.com/2021/01/28/robinhood-interactive-brokers-restrict-trading-in-gamestop-s.html

[3] ttps://www.cnbc.com/2021/01/28/interactive-brokers-restricted-gamestop-trading-to-protect-the-market-says-chairman-peterffy.html

[4] ttps://www.cnbc.com/2021/01/28/robinhood-will-allow-limited-buying-of-restricted-securities-friday-gamestop-jumps-after-hours.html

[1]

[2]

[3]

[4]

@@ Line 2: / Line 2: @@
 {{InfoboxCompany
-}}
+|Name=Robinhood Financial, LLC|Type=Subsidiary|Founded=2012|Industry=Financial Services|Official Website=http://robinhood.com/|Logo=Robinhood (company) logo.svg}}
 '''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.
 ==Public sphere==
 ===January 2021 restrictions on customer trading===
-On January 28, 2021, Robinhood systems restricted customer trading in certain securities for companies with heightened volatility in their stocks such as [[GameStop]], AMC Entertainment, and Bed Bath and Beyond.  [[CNBC]] noted that the brokerage [[IB]] had restricted trading on this trade date as well.  [[CNBC]] also reported that other brokerages such as [[TD Ameritrade]] and [[Charles Schwab]] increased margin requirements on the day prior, a move called less "drastic."  Additionally, Robinhood published a blog post dated 2021-01-28 which notes increased margin requirements on certain securities.
+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>
-Customers should be aware that brokers including Robinhood may take similar actions in the future, and that this poses a risk that they may incur economic harm as a result of being artificially impeded from entering orders.
+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==
-https://robinhood.com/us/en/
+<references />
-https://newsroom.aboutrobinhood.com/keeping-customers-informed-through-market-volatility/
-https://www.cnbc.com/2021/01/28/robinhood-interactive-brokers-restrict-trading-in-gamestop-s.html
-https://www.cnbc.com/2021/01/28/interactive-brokers-restricted-gamestop-trading-to-protect-the-market-says-chairman-peterffy.html
 [[Category:Online brokerages]]
 [[Category:Retroactively amended purchase]]