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Source: (AP Photo/Patrick Semansky)
As Leah and Matt have detailed, there is a populist revolt happening against Wall Street hedge funds.
This morning stock trading applications Robinhood, Webull and others stopped the sale and trade of a number of stocks, including Gamestop, AMC, Nokia and more. They did so after a group of Reddit investors beat hedge fund Melvin Capital at its own game and by playing by their rules.
Robinhood cited market volatility as the reason they stopped certain stock purchases and trades. People from all kinds of political backgrounds aren t buying it and are crying foul. Republican and Democrat lawmakers are paying close attention.
Frustrated investors who sued after getting locked out of trading in frenzied shares like GameStop Corp. aren’t likely to have much luck in court either.
Frustrated investors who sued after getting locked out of trading in frenzied shares like GameStop Corp. aren’t likely to have much luck in court either.
Online brokerage Robinhood Markets was named as a defendant Thursday in several federal suits demanding it reinstate trading of shares including GameStop, BlackBerry Ltd., Nokia Oyj and AMC Entertainment Holdings Inc. Just hours earlier, Robinhood, Interactive Brokers and others took steps to curtail activity in the high-flying stocks after several dizzying days of trading on their platforms whipped up volatility.
While users of the trading platforms claim in court filings that they suffered losses from the restrictions, legal experts say brokerages have broad powers to block or restrict transactions all of which is spelled out as part of customer agreements everyone signs to gain access to the services.