Re:Robinhood and Didi to Kick Off a Hot IPO Summer
by jasode on Friday June 11, 2021 @07:22AM
(#27471796)
>What is not speculation is that they restricted the buying of stocks while not restricting the selling.
Yes but RH didn't have the billions of $$$ deposited at the clearing house for their trades to be honored. Buying stock to settle a few days later requires collateral that RH didn't have.
RH does some questionable things but their "restriction of the buying" is an inevitable consequence of not having the billions to meet any margin calls. They were the tail not the dog.
Yes but RH didn't have the billions of $$$ deposited at the clearing house for their trades to be honored. Buying stock to settle a few days later requires collateral that RH didn't have.
It may help to read through the answers: https://money.stackexchange.com/questions/136272/why-would-c...
This is why they scrambled at the last minute to raise billions to meet the higher collateral requirements: https://www.google.com/search?q=robinhood+2.4+3.4+billion
RH does some questionable things but their "restriction of the buying" is an inevitable consequence of not having the billions to meet any margin calls. They were the tail not the dog.