Class Action Lawsuit Filed Against Robinhood

Re:Class Action Lawsuit Filed Against Robinhood by skeeter2020 on Thursday January 28, 2021 @03:21PM (#25948480)

let's try and keep this in perspective and avoid jumping to wild conclusions based on someone tweeting a screen shot.

First, Robinhood does not make the market or fulfill the orders, so if their market-maker has no one selling a stock they have little option other than stopping people from making purchase orders. You need both sides for a liquid market.

Second, IF these are margin positions then it is not only allowed and legal but also typical for the broker lending on margin to close out the position unilaterally. IF these are cash positions it is a completely different story.

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Re:Class Action Lawsuit Filed Against Robinhood by thatguy0900 on Thursday January 28, 2021 @03:28PM (#25948604)

If their market makers are preventing people from selling a stock surely they must prevent customers from selling stocks, right? But you can freely sell the stock.

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