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Robinhood Financial: Difference between revisions
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== Overview == | ==Overview== | ||
Robinhood Financial, LLC is a wholly-owned subsidiary of [[Robinhood | '''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 | ==Public sphere== | ||
=== January 2021 customer trading | ===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 | 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. | ||
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 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. | ||
== References == | ==References== | ||
https://robinhood.com/us/en/ | https://robinhood.com/us/en/ | ||
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https://www.cnbc.com/2021/01/28/interactive-brokers-restricted-gamestop-trading-to-protect-the-market-says-chairman-peterffy.html | https://www.cnbc.com/2021/01/28/interactive-brokers-restricted-gamestop-trading-to-protect-the-market-says-chairman-peterffy.html | ||
[[Category: | [[Category:Online brokerages]] | ||
[[Category:Retroactively amended purchase]] | |||
Latest revision as of 07:10, 24 January 2025
Overview[edit | edit source]
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 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.
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.
References[edit | edit source]
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