Under fire for suspending trading on some stocks amid buying frenzy, Robinhood raises $1B+
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Robinhood Market Inc. is under fire after it blocked trading on Gamestop Corp. and other stocks being traded by Reddit users, in an effort to ease a strain on its own finances, but it wasn’t the only retail brokerage to do so.
The online trading app said Thursday that it had to raise more than $1 billion in emergency funding from its investors to maintain a cash balance required for it to operate. It must pay customers owed money from their trades while also adding cash to its clearing facility to protect its trading partners from possible losses.