> 4) Investors believe they've outright purchased stock, because RH app shows the stock in their account, and money now gone (even though it's still pending the transfer). 5) RH then "margin calls" all of the people who had money transfers pending at the time of GME purchase.
Wait, what? That is the first that I'm hearing of this. That's crazy. Even without doing all of this, Robinhood having the ability to unpredictably/arbitrarily decide when to disable/enable actions on stocks is extremely bad for the market. They disguise this as protecting their users, but you cannot expect to have freedom as an investor if you don't know when or if you will be able to make a trade because a stock "isn't allowed right now".
Part of the problem is that Robinhood treats their user-base like children. Nobody wants to be protected from risky decisions or from themselves and you can't just do that to people. It is an insult and an unfair withholding of the right of risk and the means to make money from the little guy. That's the dumbest thing I have ever heard. Risk should be a right. Nobody should be able to force you to not take a risk.
I understand that talking to someone off a bridge is a wonderful thing, but at the end of the day, that person is never withheld the right to jump.
They didn't decide actions on market, they pulled back their loan to the users which forced the positions to close, as with any other broker (others are transparent about it though). Not that I approve but that's a difference.
No... they also put caps on how much stock you can buy for a particular symbol. They are basically controlling the volume and direction of trade for some of these symbols on their platform...
Wait, what? That is the first that I'm hearing of this. That's crazy. Even without doing all of this, Robinhood having the ability to unpredictably/arbitrarily decide when to disable/enable actions on stocks is extremely bad for the market. They disguise this as protecting their users, but you cannot expect to have freedom as an investor if you don't know when or if you will be able to make a trade because a stock "isn't allowed right now".
Part of the problem is that Robinhood treats their user-base like children. Nobody wants to be protected from risky decisions or from themselves and you can't just do that to people. It is an insult and an unfair withholding of the right of risk and the means to make money from the little guy. That's the dumbest thing I have ever heard. Risk should be a right. Nobody should be able to force you to not take a risk.
I understand that talking to someone off a bridge is a wonderful thing, but at the end of the day, that person is never withheld the right to jump.