This is really bizarre. If Robinhood is an actual stockbroker, then when a customer buys a stock, Robinhood is supposed to hold that stock as the agent of the customer. And the stock is supposed to actually, you know, exist.
If Robinhood is panicking and forcing sale of stocks without a stop loss, and against the wishes of the stock owners... what does that mean? Is Robinhood fake? Do they not actually hold stocks for their customers? Is this about to collapse as a giant scam sort of related to a pyramid scheme?
I read through their materials, and they say NOTHING about forcing the sale of customer's stocks. Those stocks are supposed to be property of the customers, and subject to the full control of the customers, full stop.
I predict this panicky behavior will reveal Robinhood as a fake stockbroker, and they will go out of business. (???)
I would like to know more. If (as others suggested) the stocks were bought on margin, then they were bought with money borrowed from RH, and RH retained the right to sell them if they perceived themselves at risk from falling value.
As I said, I don't know, and would like to know more about this.
This is really bizarre. If Robinhood is an actual stockbroker, then when a customer buys a stock, Robinhood is supposed to hold that stock as the agent of the customer. And the stock is supposed to actually, you know, exist.
If Robinhood is panicking and forcing sale of stocks without a stop loss, and against the wishes of the stock owners... what does that mean? Is Robinhood fake? Do they not actually hold stocks for their customers? Is this about to collapse as a giant scam sort of related to a pyramid scheme?
I read through their materials, and they say NOTHING about forcing the sale of customer's stocks. Those stocks are supposed to be property of the customers, and subject to the full control of the customers, full stop.
I predict this panicky behavior will reveal Robinhood as a fake stockbroker, and they will go out of business. (???)
It’s straight-up theft if they sold his property without his permission
I would like to know more. If (as others suggested) the stocks were bought on margin, then they were bought with money borrowed from RH, and RH retained the right to sell them if they perceived themselves at risk from falling value.
As I said, I don't know, and would like to know more about this.