On January 28, 2021, the Securities and Exchange Commission filed a lawsuit against Robinhood Markets, Inc. alleging that the company had engaged in “repeated and willful violations” of the federal securities laws. The SEC’s complaint alleges that Robinhood failed to disclose to its customers that it was receiving payments from trading firms for directing customer orders to them. This practice, known as “payment for order flow,” is common in the brokerage industry but was not disclosed to Robinhood customers. robinhood gamestopclark theverge
On January 28, 2021, the stocks of GameStop Corporation (GME) and AMC Entertainment Holdings, Inc. (AMC) surged due to a short squeeze caused by redditors on the subreddit r/wallstreetbets who were attempting to force the establishment investors to abandon bearish bets against struggling companies such as GameStop. robinhood gamestopclark theverge
In the past year, day trading has become increasingly popular, especially among young people. With the rise of platforms like Robinhood, which make buying and selling stocks easy and free, more people are getting involved in the stock market.
One of the most talked-about stocks in recent months has been GameStop. Due to its low price and high short interest, GameStop has been a favorite of day traders.
