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Business, Economics, and Taxes: Capitalism. Yay? >=(

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Handyman said:
Well technically Robinhood is muzzling their app users :^o
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I’ve gotta believe this may be the dumbest move ever by a hedge fund and Wall Street. They could’ve taken the L and made it back quietly really quick, instead they tried to stem their losses by their usual methods and now everything is getting blown open.
 
BassAle said:
Lol

https://mobile.twitter.com/AOC/status/1354848253729234944
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I cannot overstate how much I love her.

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BassAle said:
Robinhood delisting also tanks the prices since millions of people can still sell but not buy

Rumor is that Citadel (the same Citadel that bailed out Marvin Capital) fills orders made on the Robinhood platform and they're the reason it's delisted. If so, that seems like a pretty big conflict of interest.
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DISCLAIMER: I've never used Robinhood.

I did not realize that the app would allow selling but not buying. That comes off as shady right away. Should that rumor regarding the cause of Robinhood delisting the item, then there's a good reason to move off that app to another option. I know that saving $5/order appears attractive, but it just may not be worth it in the end.

Also, another note on Robinhood...if you're placing larger orders, over $X or X shares/units, it may be better to go with a per-transaction fee than a company like Robinhood. The NASDAQ has a priority assignment for trades that can dictate if you're getting the best price or not. It's been a long time since I've dealt with this directly, so I don't recall the terminology. Regardless of the name...discount brokers offer their services for cheaper by saving on the priority fees when placing orders. A brokerage house placing a trade for its own benefit will place at priority 1, and then on down the line; I think there were 5 priority levels when I last held NASD certification.
 
Jimjamesak said:
I’ve gotta believe this may be the dumbest move ever by a hedge fund and Wall Street. They could’ve taken the L and made it back quietly really quick, instead they tried to stem their losses by their usual methods and now everything is getting blown open.
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Could they, though? Melvin needed a cash infusion on Tuesday. I don’t know how much cash/liquidity some of these other places have, but GME shorted 140%, which from what I’ve read is supposed to be illegal but is rarely enforced. If GME did/does end up going TO THE MOON and hitting 1k, my bet is that would wipe out firms beyond recovery.

I mean, you’re theoretically talking infinite loss possibilities on this.

On another note. everyone was running to WeBull this morning, but it looks like they’ve been told to shut it down by their clearing firm.
 
St. Clown said:
DISCLAIMER: I've never used Robinhood.

I did not realize that the app would allow selling but not buying. That comes off as shady right away. Should that rumor regarding the cause of Robinhood delisting the item, then there's a good reason to move off that app to another option. I know that saving $5/order appears attractive, but it just may not be worth it in the end.

Also, another note on Robinhood...if you're placing larger orders, over $X or X shares/units, it may be better to go with a per-transaction fee than a company like Robinhood. The NASDAQ has a priority assignment for trades that can dictate if you're getting the best price or not. It's been a long time since I've dealt with this directly, so I don't recall the terminology. Regardless of the name...discount brokers offer their services for cheaper by saving on the priority fees when placing orders. A brokerage house placing a trade for its own benefit will place at priority 1, and then on down the line; I think there were 5 priority levels when I last held NASD certification.
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yeah, you can close your GME position in Robinhood, but not buy new shares (or options). Same with AMC, BB, and maybe some other stocks.

Robinhood is now saying it's Apex Holdings, the clearing firm Robinhood uses, that made the call to halt trading of those stocks.

Citadel Securities is Robinhood's largest customer: they pay for Robinhood's order-flow. The cost of the 'free' trades on Robinhood is letting Citadel fill the order and profit off the spread.
 
This is amazing. Redditors playing the role of Dorothy as they pull the curtain away from the wizard. Meanwhile, hedge funds are frantically pulling levers while yelling to ignore the man behind the curtain. This is fun to watch.
 
aparch said:
This is amazing. Redditors playing the role of Dorothy as they pull the curtain away from the wizard. Meanwhile, hedge funds are frantically pulling levers while yelling to ignore the man behind the curtain. This is fun to watch.
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And some politicians are not going along with the Wall Street con, which is JUST NOT DONE.

I wonder whether this, or something like it, could actually finally teach people that Wall Street, and Finance, is the opposite of the real economy.
 
Spartanforlife4 said:
but GME shorted 140%, which from what I’ve read is supposed to be illegal but is rarely enforced
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From what I have read it is not illegal, which is amazing but not surprising. Hedges can "borrow" your shares to churn and make it appear the price is dropping with sells even though no actual transactions take place. In doing so they actually "create" fictive shares with no real existence and if they do it abusively the math makes it look like the shorted shares exceed the total number of real existing shares. The only way to stop them is to have your shares be in an active state (I guess by placing some outrageous option -- at that point I lose consciousness from the sheer triviality and boredom of this idiotic game).

Everyone who makes their money this way on Wall Street should be shot. They are obviously parasites who not only add no value but f-ck everybody else who is sincerely trying to create value.

Wall Street are terrorists against Main Street. Bankrupt and imprison them all.
 
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Kepler said:
From what I have read it is not illegal, which is amazing but not surprising. Hedges can "borrow" your shares to churn and make it appear the price is dropping with sells even though no actual transactions take place. In doing so they actually "create" fictive shares with no real existence and if they do it abusively the math makes it look like the shorted shares exceed the total number of real existing shares. The only way to stop them is to have your shares be in an active state (I guess by placing some outrageous option -- at that point I lose consciousness from the sheer triviality and boredom of this idiotic game).

Everyone who makes their money this way on Wall Street should be shot. They are obviously parasites who not only add no value but f-ck everybody else who is sincerely trying to create value.

Wall Street are terrorists against Main Street. Bankrupt and imprison them all.
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Securities lending is a giant PITA when attempting to settle a sell trade whose shares are currently on loan. I've seen situations where the owner of the shares have had to wait to complete their sell trade because the shares have to be recalled by seven different entities. It's supposed to promote liquidity in the markets, but it can be weaponized by savvy investors.
 
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