Gamestop

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GME and AMC are back up on Robinhood.

Robinhood is paid a huge annual fee by Citadel for data. Citadel clears about 40% of all trades made (execution). Citadel is owned by Melvin Capital. Melvin Capital has a huge short position on GME.

Melvin Capital told Robinhood to allow sells of GME and AMC but no buys.

Class action lawsuits are in the works.

Melvin changed theirs minds and GMC and AMC are now tradable on Robinhood.

Crazy.
It is. Reading some stuff from posters and it's like a rebellion. Pretty wild.
 

chri1673

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Ahhh...didn't see that. I don't hold it. For a while this morning, several stocks, including GME and AMC were hidden from search. They are now searchable.
Gotcha, Robinhood was all sorts of messed up this morning, was hard to buy/sell anything in a timely manner. As you stated in your previous post, it is pretty clear who they are aligned with. Probably hard for them to keep up with the traffic of people pulling their money off.

From what I read Robinhood was planning an IPO soon. That is now dead as they sold out to Citadel and other hedge funds.
 

saintpaulguy

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Steals from the poor, gives to the rich, stupid bitch.
 

MplsGopher

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You have to appreciate the irony of a company called Robinhood caving to the rich because the poor were taking their money.
Are they (Robinhood) trying to say that they're anticipating a ruling that such trading activity is illegal, and therefore they will not allow it on their platform?

Crazy to think about the (semi-)parellels between that and Twitter, Facebook, etc. not allowing people to do crazy (but possibly legal) talk on their platforms.
 

MplsGopher

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Same thread... No idea if the reddit poster below is credible but this is being shared around the twitterverse.
We have no way of knowing if "odin19199" is a RH developer. Even if they are, "we overheard" is not legal evidence.
 

chri1673

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Are they (Robinhood) trying to say that they're anticipating a ruling that such trading activity is illegal, and therefore they will not allow it on their platform?

Crazy to think about the (semi-)parellels between that and Twitter, Facebook, etc. not allowing people to do crazy (but possibly legal) talk on their platforms.
I read it more like "Retail investors are too dumb to handle their own money so they are locking us out to protect us from ourselves."

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stocker08

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RH is probably in deep shit. Especially if it is shown that Melvin/Citron/Etc used the purchase halt in order to take advantage of the lower prices and close out their shorts.

 

MplsGopher

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Obviously a noob child question:

what is the legal mechanism to be able to purchase or sell a share of stock at the market? Why does a regular person need a portal like Robinhood to do it? Why can't I just go to NYSE.com and do it, or whatever?
 

Unregistered User

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Obviously a noob child question:

what is the legal mechanism to be able to purchase or sell a share of stock at the market? Why does a regular person need a portal like Robinhood to do it? Why can't I just go to NYSE.com and do it, or whatever?
Think of a trading platform (either app, or brick and mortar) as a bank. They will handle the transaction, and keep track of the accounting, losses, gains, shares owned, provide statement, etc. and much more.

The stock markets have no similar mechanism (or desire) to do that.
 

MplsGopher

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Think of a trading platform (either app, or brick and mortar) as a bank. They will handle the transaction, and keep track of the accounting, losses, gains, shares owned, provide statement, etc. and much more.

The stock markets have no similar mechanism (or desire) to do that.
Makes sense ... but what if I'm handy with numbers and willing to do all that (keep track of the accounting, losses, gains, shares owned, provide statement, etc.) myself?

Where's the manual bypass option to go directly to the market? Assuming there is none, for schmucks like me, for reasons. But the institutions do have such access, I assume.

Is the Series 7 the gatekeeper? Or are there even more rules/laws on top of that?

EDIT: Google is my friend. "how to become a broker dealer" and "how to start my own brokerage" are interesting
 
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balds

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Same thread... No idea if the reddit poster below is credible but this is being shared around the twitterverse.

Wouldn't be surprising. Texted someone early this morning that the politicians would rush in to save/help their large donors. 30 minutes later?
 

stocker08

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Wouldn't be surprising. Texted someone early this morning that the politicians would rush in to save/help their large donors. 30 minutes later?
30 minutes later a private brokerage stalled trades. Give yourself a pat on the back for ???
 

MplsGopher

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Wouldn't be surprising. Texted someone early this morning that the politicians would rush in to save/help their large donors. 30 minutes later?
This should have nothing to do with politics.

I'm taking a wild guess that the WH was invoked in the message in the hopes of folding this into the ever more encompassing socioeconomic-political culture war.
 

stocker08

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It wasn't just RH. Ameritrade and others did it too.
Are you referring to the trade halt? Not the same as the platforms not allowing traders to buy the stock. There may have been more than just Robinhood....but there were platforms allowing it.
 

TruthSeeker

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Are you referring to the trade halt? Not the same as the platforms not allowing traders to buy the stock. There may have been more than just Robinhood....but there were platforms allowing it.
Yep. You've got it right.
 

stocker08

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I was watching it today to see what happened. It got halted a few times, which is across all platforms. No buying or selling. Has nothing to do with the brokerage. Happens for a number of reasons....but the reason that I've typically seen it happen is because of volume. Coming in way too quickly that "they" have to stall it to catch up.
 

GophersInIowa

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I'm clueless when it comes to the stock market. I have retirement accounts that mostly own shares of various managed products. I don't personally trade, at all.


Is there any basic primer, for what the hell is going on? I only very basically know what a short even is.
Yeah I needed help with all this too. Still doesn’t make a lot of sense to me.

 

Section2

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Take it FWIW:

It’s not class warfare. It’s just illegal and unethical. The LAST thing you want in the world if you are a hedge fund is the SEC auditing you. Insider trading laws are really ambiguously written. If they want to get you, they will get you. It would be hard to believe a firm as big as Citadel would do something so obvious and stupid, but if the situation is desperate enough, possible .

they are too big to fail though. If they skate, it’s because government didn’t want to bring them down or the facts are way wrong.
 
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