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Robinhood and other retail brokerages took steps to tamp down the speculative frenzy surrounding companies such as GameStop, but the actions only sparked more volatility in the market and an outcry from users of the platforms and some members of Congress who say small investors are being treated unfairly.
GameStop stock has rocketed from below $20 earlier this month to close around $350 Jan. 27 as a volunteer army of investors on social media challenged big institutions who had placed market bets that the stock would fall.
The action was even wilder on Thursday: The stock swung between $112 and $483 before closing down 43.2% at $197.44. It then shot back up 60% in after-market trading.
29 January 2021, 12:37 am EST By
The Robinhood app, a commission-free trading platform has changed the world by challenging the notion of traditional investment and financial education. Now, the app is a billion dollar business, with more than 13 million users. It has also recently been the spotlight of dialogue following numerous price spikes in different company stocks.
(Photo : Screenshot: Youtube Video by CNBC)
Who Owns Robinhood?
Born in Bulgaria, Robinhood co-founder and CEO Vlad Tenev was raised in a community where there are only two options for saving: putting it in a state bank or leaving it under the mattress. Financial education on the other hand was a privilege that requires tons of resources to get your hands on the books.