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Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

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Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#541

Post by jl2718 »

speeder wrote: post #9

This sort of stuff will put people more and more on edge, there is the deplatforming going on, people asserted their power financially, and now getting that removed too, the powers that rule USA don't realize that soon the only tool left to common people is violence? Even more with some irresponsible newspapers blaming the whole thing on GamerGate and Alt-Right, effectively pushing away people that previously could b…

> GamerGate Actually it seems related to me. Leveraged short-selling is a tactic of activist investors to take control of a company, and there was an article about what they wanted to do with it. No doubt the past actions of activist investors in the gaming industry was fuel for this fire. I’m not a gamer and I don’t know what is going on, but I think it has something to do with getting rid of the ownership model of games to make way for cloud gaming and advertising, served with a political agenda. GameStop made the ownership model work. Every major cloud service provider, social media company, and their investors all want it gone. Gamers know that ownership is the only way to keep politics out of gaming.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#542

Post by SpicyLemonZest »

volta83 wrote: post #325
alistproducer2 wrote: post #122

Earlier quoted context omitted.

Reddit and discord are afraid they'll be implicated in what is a classic pump and dump. Robinhood only exists because the SEC has chosen to look the other way concerning the pattern day trading rule which clearly is in jeopardy if big money starts complaining.

How is this a classic pump and dump ? This is a short squeeze: the stock is shorted to the limit, and from the stock price, the shorters entered their positions "uncovered", so their risk is extremely high, and their losses are potentially infinite. The WSB crowd and probably others noticed this, and bought the stock, knowing that it was going to become more valuable over time once the shorters had to close their pos…

It's a classic pump and dump because there's just no reason to believe that this is what's happening. There was a short squeeze at one point, but all of the funds known to hold large short positions had closed their positions by Wednesday morning; the value since then was most likely driven entirely by speculation.

In particular, I've seen a lot of speculators spreading the idea that margin calls will force everyone shorting Gamestop to buy stock at market price on Friday. This is wrong, and pretty unequivocally so, but I've had multiple friends come to me and explain that this is why they bought some.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#543

Post by aphextron »

wyldfire wrote: post #26

Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…

>Why should Robinhood pick a winner (siding against their own customers)?

Robinhood operates a lot like Facebook. The "Gold" subscriptions and margin interest are tiny portions of their actual revenue. We are not their customers, we are the product. They offer free trades in exchange for selling order flow data to hedge funds, which in turns allows them to manipulate the markets. Of course they would protect their actual customers.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#544

Post by moistrobot »

josho wrote: post #457
vergessenmir wrote: post #365

Earlier quoted context omitted.

This is so true. It's all connected. It's probable that Reddit, Discord, RobinHood have all received calls to disrupt retail traders from political players or financial backers. There's no evidence of this, the truth is we'll never know, but how its most obvious reason. If only RobinHood would live up to its namesake. It is alarming that "soft" circuit breakers are being used to target retail traders on exchanges. I…

I look forward to the investigations on market manipulation that RH, Schwann, and TD did by not allowing their customers to trade on that stock. Or is it normal for brokers to independently halt trades on stocks they deem too risky?

Brokers don't have a fiduciary interest, unlike Asset Managers. So, no. They have no obligation to halt trades, usually they make money on volume of trades and would encourage people to trade more. https://www.forbes.com/sites/forbesfinancecouncil/2020/06/17...

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#546

Post by bnjms »

sandworm101 wrote: post #445
TheRealDunkirk wrote: post #87

Earlier quoted context omitted.

> the powers that rule USA don't realize that soon the only tool left to common people is violence? What's even more concerning to me is that, to platforms looking for an excuse, your comment could be painted as trying to "incite" violence, and used as a justification to ban you.

>> only tool left to common people is violence? I am genuinely interested in the physicality of how that would play out. A mob with pitchforks makes a run at a Facebook HQ. Do they kidnap employees until they find one with the access to re-initialize the account? I guess they would have to keep the hostages forever, else the accounts be disabled again the next day. Do they setup a camp outside with the declared inten…

I don’t want to be banned but... You are, I think, blessed to not be able to imagine violence. When someone says violence is an outcome the violence becomes the goal — not reinstating accounts... You don’t physically attack a DC you sever as many links in and out as possible.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#547

Post by Aunche »

snakeboy wrote: post #226
bko wrote: post #136

Earlier quoted context omitted.

> the powers that rule USA don't realize that soon the only tool left to common people is violence? Do you honestly believe this? Somehow we'll go from not being able to buy certain stocks to violence? Banning collecting rain water on your own property didn't do it. Abject failure of politicians keeping drinking water clean didn't do it? Not being able to buy cheese from unpasteurized milk didn't do it. Can't grow a…

I think it's important to put this in the context of many other related issues/pressures: * Increasing wealth inequality for several decades now * older generations holding onto more wealth and power in society than ever before - with a large share of their wealth in the stock market * Wall Street is seen as entirely unaccountable due to 2008 bailout * Pandemic this year has basically been a huge wealth transfer from…

Robinhood is in a heads I win, tails you lose scenario with the press here. Wealth inequality will get even worse if regular people lose a ton of money on GME. They already fucked up by causing one guy to commit suicide, so you can't blame them for playing it safe this time.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#548

Post by graiz »

This is messed up. The only the stock exchange (NASDAQ/NYSE) should be able to halt a stock. We need a "stock neutrality" for trading platforms.

Robinhood claim that they are protecting investors assumes that they don't understand the risks of stock investing. Did the shorts understand the risks of shorting a stock over 100%?

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#549

Post by WrtCdEvrydy »

techsupporter wrote: post #538
joering2 wrote: post #438

Earlier quoted context omitted.

Now they made enemies of most of their clients. I bet not more than few weeks before you will see advertising from big shot lawyers on national TV welcoming you into class action lawsuits. Frankly, I am terribly disgusted by this news from Robinhood and I hope they will be sued into eternity... and then hopefully DOJ step in an see what they did was illegal. If you have Robinhood account, write you state AG. Show you…

> you will see advertising from big shot lawyers on national TV welcoming you into class action lawsuits Like all darling start-ups, Robinhood has a section of its terms of use whereby users give up their right to sue. Because courts are only for the rich and those with the power to negotiate. The rest of us clicking on take-it-or-leave-it contracts can pound sand. Section 38: https://cdn.robinhood.com/assets/robinho…

What if you're not a user and these trade restrictions affected your trades outside of the RH platform?

It's illegal to dump products on a market (physical products) below price... yet some a-hole can force their plaform into "sell-only" mode and it's all cool.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#550

Post by optimiz3 »

wyldfire wrote: post #26

Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…

Disgusting level of manipulation. If you can only close positions the only people who can buy are short sellers closing their positions.
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