Robinhood stock trading app confirms $110M raise at $1.3B valuation

Re:Robinhood stock trading app confirms $110M raise at $1.3B... by theseatoms on Wednesday April 26, 2017 @01:35PM (#14205149)

Sure. It's Robinhood's money, which they're choosing to lend to their customers. So Robinhood can bear the consequences if the loan can't be repaid. (As others have pointed out, they have ways to protect themselves. Margin calls, forced liquidations, etc)

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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by smaddox on Wednesday April 26, 2017 @04:07PM (#14206498)

Is it Robinhood's money? Are they required to maintain reserves to cover 100% of the loans they issue? If not, then it's not their money.

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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by theseatoms on Wednesday April 26, 2017 @04:56PM (#14206908)

Good point. I sure hope that they're required to hold 100% reserves on loans. I'd like to see an end to fractional reserve banking. That's not unique to Robinhood, but part of a much larger conversation—one that more people should be having.

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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by rtx on Wednesday April 26, 2017 @02:45PM (#14205808)

Another more clever way is to deliver shares from their own pool.

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