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The relationship between Robinhood and Citadel Securities has raised concerns about Wall Street ethics
This appeared in The Millennial Source
As GameStop’s stock value soared, one of the main brokerage apps, Robinhood, stopped transactions for the stock. The move has not only angered investors, but has led to calls for investigating the entire industry.
The last week of January was a volatile one for the stock market. That volatility was due to the sudden buying frenzy of GameStop stock (and, eventually, other similarly troubled companies like AMC Theatres), which was instigated by a Reddit thread entitled “r/wallstreetbets.”
The GameStop story, like the stocks themselves, has had many ups and downs. It initially seemed like a “David and Goliath” tale about outsider traders making a winning bet on the stock market. It quickly became a story about keen new investors being stymied by established Wall Street firms and an industry built around gatekeepers.
As GameStop’s stock value soared, one of the main brokerage apps, Robinhood, stopped transactions for the stock. New investors were cut off just as they had joined the fun. The move has not only angered investors, but has led to calls for investigating the entire industry.
