Re:Analysis: Robinhood protected from lawsuits by user agree...
by skizm on Saturday January 30, 2021 @01:34PM
(#25971591)
They would have gone out of business if they did not restrict trading and GME went back down to the 20-40 USD range though.
[ Parent
| on HN ]
Re:Analysis: Robinhood protected from lawsuits by user agree...
by oneeyedpigeon on Saturday January 30, 2021 @02:19PM
(#25972034)
Would they have gone out of business if they had suspended trading as opposed to suspending just buying?
Re:Analysis: Robinhood protected from lawsuits by user agree...
by skizm on Saturday January 30, 2021 @03:01PM
(#25972426)
Selling helps them cover all the loans they gave out to pretend that buying / selling stocks is instant (and depositing money). The clearing house they use dramatically increased the collateral needed due to market volatility and they basically did not have the cash. They literally had to go raise another billion dollars in funding over night to cover costs.