In an unprecedented move Robinhood issues statement regarding the restriction of securities to position closing only, including $AAL, $AMC, $BB, $BBBY, $CTRM, $EXPR, $GME, $KOSS, $NAKD, $NOK, $SNDL, $TR, and $TRVG that signals certain stocks were reserved for wall street investors and the super rich.
MKG Financial Group Equity Fund Advisors LLC IBA investors brokerage accounts was unaffected by this trading halt.
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Many economists can conclude that Robinhood was pressured by right wing conservatives, wallstreet and hedge funds against Reddit Wallstreetbets.
Factoids: Robinhood may go public as early as this quarter. The FinTech was valued at around $11.7 billion during a financing round in September and has more than 13 million user accounts, said Bloomberg.
The IPO would come on the heels of an SEC settlement by the company over claims that it misled users of its platform.
Robinhood hit with class action lawsuit after it restricts Gamestops stock.
A class action lawsuit was filed in New York Thursday, alleging that Robinhood “deprived their customers of the ability to use their service,” in an effort “to manipulate the market for the benefit of people and financial intuitions.”
The lawsuit comes hours after Robinhood informed users that it would restrict a handful of stocks, including GameStop, Blackberry, AMC, and American Airlines, due to “recent volatility.” The company also said it would raise margin requirements for some securities.
STATMENT ISSUED
Our mission at Robinhood is to democratize finance for all. We’re proud to have created a platform that has helped everyday people, from all backgrounds, shape their financial futures and invest for the long term.
We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AAL, $AMC, $BB, $BBBY, $CTRM, $EXPR, $GME, $KOSS, $NAKD, $NOK, $SNDL, $TR, and $TRVG. We also raised margin requirements for certain securities.
Amid significant market volatility, it’s important as ever that we help customers stay informed. That’s why we’re committed to providing people with educational resources. We recently revamped and expanded Robinhood Learn to help people take advantage of the hundreds of financial resources we offer and educate themselves, including how to make sense of a volatile market. In 2020, more than 3.2 million people read our articles through Robinhood Learn.
We’re committed to helping our customers navigate this uncertainty. We fundamentally believe that everyone should have access to financial markets. We’re humbled to have helped many people invest in the markets for the first time. And we’re determined to provide new and experienced investors with the tools and resources to help them invest responsibly for their long-term financial futures.