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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

#861

Post by dawnerd »

ryanSrich wrote: post #858
Denvercoder9 wrote: post #834

It's interesting to see the outrage about this. Everyone who has done a bit of research into this kind of broker knew this. It's the only way to get the commissionless trading they advertise with. Just another case of "If you are not paying for it, you're not the customer; you're the product being sold".

I see little outrage about this. The outrage is about illegally manipulating the market in broad daylight by preventing retail investors from purchasing a stock. Is a user expected to tolerate illegal activity because the businesses customer demands it of them? If you have any doubt what Robinhood is doing is illegal (setting aside that it's clearly morally reprehensible), then I encourage you to read the suit that w…

And forcefully selling peoples' shares now as well.

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

#862

Post by JumpCrisscross »

dawnerd wrote: post #861
ryanSrich wrote: post #858

Earlier quoted context omitted.

I see little outrage about this. The outrage is about illegally manipulating the market in broad daylight by preventing retail investors from purchasing a stock. Is a user expected to tolerate illegal activity because the businesses customer demands it of them? If you have any doubt what Robinhood is doing is illegal (setting aside that it's clearly morally reprehensible), then I encourage you to read the suit that w…

And forcefully selling peoples' shares now as well.

> forcefully selling peoples' shares

Is this a reference to margin calls?

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

#863

Post by TeaDrunk »

ryanSrich wrote: post #858
Denvercoder9 wrote: post #834

It's interesting to see the outrage about this. Everyone who has done a bit of research into this kind of broker knew this. It's the only way to get the commissionless trading they advertise with. Just another case of "If you are not paying for it, you're not the customer; you're the product being sold".

I see little outrage about this. The outrage is about illegally manipulating the market in broad daylight by preventing retail investors from purchasing a stock. Is a user expected to tolerate illegal activity because the businesses customer demands it of them? If you have any doubt what Robinhood is doing is illegal (setting aside that it's clearly morally reprehensible), then I encourage you to read the suit that w…

if RobinHood can just pay whatever fine and continue operating as normal, then it's effectively legal for any entity of RobinHood's wealth.

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

#864

Post by cmmeur01 »

JumpCrisscross wrote: post #859
belltaco wrote: post #840

Earlier quoted context omitted.

Not really, the outrage is over a short of GME being a customer. If the headline was about Firm XYZ without a short in GME paying $100M it wouldn't be as newsworthy.

> the outrage is over a short of GME being a customer Do we have any evidence Citadel is materially net short GME? They bailed out Melvin Capital. But Melvin Capital announced that they closed out their short position. And bailing out Melvin Capital isn't the same thing as assuming their positions.

Please provide evidence they have closed their short other than them talking their portfolio.

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

#866

Post by sltkr »

vincentmarle wrote: post #439
sltkr wrote: post #330

Earlier quoted context omitted.

> If the short sellers think the stock is overpriced, and there's others that think its underpriced, then both sides are placing their bets and will deal with the result, either by making or losing a lot of money. I don't think it's really a case of people disagreeing on the real value of GameStop stock. Framing it like this ignores important facts. This stock was trading around $4 in August, around $20 in the beginn…

Yeah, so... what? Which laws dictate that stock needs to be traded at “fair price”?

I didn't say there is such a law. I'm just saying it's not a case of "two sides disagreed on the true value of the company". It's not so symmetric.

One side was selling short because they believed (not unreasonably) that GameStop's core business is in trouble and is likely to go bankrupt (or at least more likely to lose value than gain it).

The other side was buying long not because they believed GameStop was likely to reinvent itself, but only because they noticed a lot of funds had sold it short and saw a short squeeze coming. They wouldn't have bought at the current stock price if the other guys hadn't sold short.

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

#867

Post by buttholesurfer »

Funny how everyone has no problem with blocking users and stopping ideas from spreading until it impacts them.

When facebook, twitter, youtube and reddit block the things we don't like, we cheer... but when they do it to things we like, there's outrage.

Almost like censorship in any form is bad.

I know they are two different problems, but its awfully funny to see the crowd yelling "just make your own platform" (in regards to censorship) get outraged at this.

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

#868

Post by Denvercoder9 »

ryanSrich wrote: post #858
Denvercoder9 wrote: post #834

It's interesting to see the outrage about this. Everyone who has done a bit of research into this kind of broker knew this. It's the only way to get the commissionless trading they advertise with. Just another case of "If you are not paying for it, you're not the customer; you're the product being sold".

I see little outrage about this. The outrage is about illegally manipulating the market in broad daylight by preventing retail investors from purchasing a stock. Is a user expected to tolerate illegal activity because the businesses customer demands it of them? If you have any doubt what Robinhood is doing is illegal (setting aside that it's clearly morally reprehensible), then I encourage you to read the suit that w…

> I see little outrage about this. The outrage is about illegally manipulating the market in broad daylight by preventing retail investors from purchasing a stock.

There's outrage about both. This story wouldn't be submitted and upvoted if this was common knowledge and accepted practice.

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

#869

Post by imtringued »

notahacker wrote: post #685
pdevr wrote: post #50

99.99% (or more) of people who buy lotteries, lose ALL their money. However, government allows anyone to buy them. There is no meaningful restriction for an assured destruction of wealth for most of those who buy them. While this GME/AMC run will not end well for many people, restricting people from buying those stocks - whether it is through actions of trading platforms or governing agencies - smacks not just of pat…

99.99% of people who buy lotteries know it's a gamble rather than a moneymaking strategy. Nobody is advising people buying lottery tickets that they should borrow money to buy as many of them as possible because they will make a nice easy profit at the expense of the rich. It's often said lotteries are a tax on people that don't understand probability, but at least people playing don't think they're doing arbitrage.…

People buy GME for entertainment purposes. Instead of buying games at gamestop they want to have fun in a different way. By stopping the fun Robinhood basically gave everyone a big fuck you.

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

#870

Post by jaxwerk »

LatteLazy wrote: post #167
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…

I think it's BS to stop people trading but... You can make a good argument that WSB are engaged in market manipulation. RobinHood don't want to be the broker for that for a whole myriad of reasons.

I would love to see a good argument there, because while that argument is easy to accept at face value, when I dig deeper at the concept of what market manipulation is, I fail to find behavior that the majority of WSB is engaging in that fits that criteria.

Where are the fraudulent statements causing price pumps? None of the prominent due diligence the community has provided that started this run has been found to be untrue. Their thesis still stands: GME was undervalued and shorts were vulnerable to a squeeze.

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