An Update on Market Volatility

"As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment."

Can anyone translate that?

It seems to be referring to:

* https://en.wikipedia.org/wiki/Net_capital_rule

* https://en.wikipedia.org/wiki/Automated_clearing_house

Re: An Update on Market Volatility

#7

Post by gmaster1440 » Thu, Jan 28, 2021, 9:43 PM UTC

We're in a bubble that's being used instrumentally in a game of chicken between average joe with RH account and hedge funds on their short positions.

There's more to gain from this because of the social aspect (social change and reform), but also more to lose (bubble bursting on the average citizen that has more to lose personally than a fund).

I'm obviously not cheering for the funds here, but I do worry for people like my dad who can just buy a stock more easily than order dinner.

The social movement is honorable, but at what cost? This has the shape and character of a Joker move, when does the bubble burst?

Re: An Update on Market Volatility

#8

Post by oh_sigh » Thu, Jan 28, 2021, 9:43 PM UTC

If it was decided that most people could only sell stock, not buy it - who exactly is buying the stock?

Re: An Update on Market Volatility

#9

Post by probe » Thu, Jan 28, 2021, 9:44 PM UTC

This was an awful PR response.

I actually buy the reasoning behind it - but putting out a corporate speak like this instead of trying to emotionally relate to upset users? Smh

Re: An Update on Market Volatility

#10

Post by 0xy » Thu, Jan 28, 2021, 9:45 PM UTC

Robinhood routes their order flow to Citadel, who stands to directly profit from Robinhood restricting trades on GameStop. It's hard to see how Robinhood's reputation isn't absolutely destroyed after this betrayal.