Robin Hood is the real life Pied Piper - people think they are changing the world but really they're leading people around in circles.
Robinhood, in Need of Cash, Raises $1B from Its Investors
61–70 of 479 posts
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#62Earlier quoted context omitted.
And right after saying they don't have any liquidity problems said, "We're #1 on the app" while retail investors were losing millions because of expiring options/stocks. Absolutely tone-deaf. Not denying that all securities have risks, but that was a bad response imo.
Retail investors lost millions because of an inability to buy?
I guess the theory from some people is that if they could have kept buying then the stock would go up (and trigger the squeeze).
Not sure I buy it (esp with the amount of call options that are just going to magnify the move up but also the move down).
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#63Earlier quoted context omitted.
I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.
Do users actually lose the stocks, if something that happens to the Robinhood itself? I live under assumption that it is not happening. In any case stocks should stay belonging to the folks who purchased them.
That is normally what happens if the broker goes bankrupt the stocks should still be yours.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#64Earlier quoted context omitted.
And right after saying they don't have any liquidity problems said, "We're #1 on the app" while retail investors were losing millions because of expiring options/stocks. Absolutely tone-deaf. Not denying that all securities have risks, but that was a bad response imo.
Retail investors lost millions because of an inability to buy?
It will scare people off triggering a sell
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#65Earlier quoted context omitted.
I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.
Do users actually lose the stocks, if something that happens to the Robinhood itself? I live under assumption that it is not happening. In any case stocks should stay belonging to the folks who purchased them.
Yes, but it can be a messy process:
https://www.investopedia.com/articles/investing/050515/what-...
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#66Dear Hollywood, Please make a movie out of this.
The Big Squeeze
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#67Earlier quoted context omitted.
Why? For a brokerage it's an existential concern. And they can't publicly admit it's a problem either, because that would likely trigger the brokerage equivalent of a bank run. (Of course, odds are they're already grappling with that as well.)
I had a neutral to negative view toward this product before today. In part due to the product’s UX having to change after a customer killed themselves and cited the app in their suicide note. [1] I noticed that before but bad stuff happens, I had not heard of further issues and it was likely a series of contributing factors. That said, this bind broke the entire concept of the branding of the product. I’d never insta…
They've lost the trust of people YOLOing on meme stonks. I'm sure it's a noisy part of their userbase, but still only a part.
It would be interesting to see stats on how many people use RH for long-term investments (buy and hold, DCA, etc), and how many use it as a form of gambling (day trading, leveraged options etc).
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#68Earlier quoted context omitted.
And right after saying they don't have any liquidity problems said, "We're #1 on the app" while retail investors were losing millions because of expiring options/stocks. Absolutely tone-deaf. Not denying that all securities have risks, but that was a bad response imo.
Retail investors lost millions because of an inability to buy?
I believe some margin positions got called and closed, which might not have been if more people continued to pump the stock by buying more.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#69Previous relevant comment
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#70Earlier quoted context omitted.
I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.
Do users actually lose the stocks, if something that happens to the Robinhood itself? I live under assumption that it is not happening. In any case stocks should stay belonging to the folks who purchased them.
Stocks don't belong to you, unless you have the actual physical stock. Everybody borrow them from 3rd party who borrow them from 3rd party who borrow them from 3rd party, who actually lended them multiple time to short the stock, who borrow them from a 3rd party, who actually have the physical piece of paper in a vault somewhere.
I am not even joking.
And it's the same for transactions or your bank balance. The bank doesn't keep your money and give it back to you. At least, for banks, they are backed by the government and IMF. For stocks and gift card balance, I am not so sure.