Robinhood, an online brokerage app that was named after a folk hero. He was someone who stole from the rich and gave to the poor. But this time the online brokerage app is being criticized for blocking purchases for certain stocks. People are enraged by this situation and have been accusing and criticizing the firm saying that it has done the opposite of what Rohinhood a mythical being was doing.
Robinhood’s customers were enraged on Thursday when it halted new buy orders on stocks like GameStop, GME -44.29%. This step by the online brokerage has caused quite an uproar. People have been accusing it of stealing from the poor to give to the rich after it limited trading on GameStop shares.
What Were Robinhood’s Statement On The Accusations And The Limited Trading On Shares?
The App had released a statement on Thursday Morning stating that users can close out their positions but cannot buy more stock. After which they even mentioned that “We continuously monitor the markets and make changes where necessary,” Robinhood said. “In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities.”
Is Robinhood The Only Trading Company To Limit Stocks?
Many other trading companies have also limited transactions for these stocks. Among which TD Ameritrade and Charles Schwab have also placed similar restrictions on Wednesday. Unfortunately for Robinhood, it was the only trading app to bear the heat of the people. Since this is not their first time being criticized it makes sense as to why people have been so angry with its steps on restricting purchases of shares.
Check Out Tweets From Traders:-
Trading apps: Here, have zero-cost trading and options access, go wild
Also trading apps: Woah not like *that*
— alex (@alex) January 28, 2021
Robinhood should have called their app "Maintain" or "Status Quo."
— Nana Kwame (@NK_Adjei) January 28, 2021
This Robinhood story should tell you everything you need to know about capitalism. No one cares about poor people, but institutions will move heaven and earth to protect the interest of the rich
— RespekMyPoliticks (@StanFritz) January 28, 2021
A bunch of investment apps have completely prevented regular folks from buying meme stock so the richest of the rich can "prepare" behind closed doors. Some people are learning in real time how the free market has never been free.
— Savvy☭ (@sleepisocialist) January 28, 2021
The irony of an app named Robinhood being the protector of the bourgeoisie in the midst of a global pandemic is palpable
— Lord (@ObieOne_) January 28, 2021
Even lawmakers went ahead in criticizing the online brokerage app for their actions:-
— Grace Segers (@Grace_Segers) January 28, 2021
This is beyond absurd. @FSCDems need to have a hearing on Robinhood's market manipulation. They're blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who've used the stock market as a casino for decades. https://t.co/CGkJxVfzkv
— Rashida Tlaib (@RashidaTlaib) January 28, 2021
— Ted Lieu (@tedlieu) January 28, 2021
This is unacceptable.
We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021