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  1. #1
    Veteran InRareForm's Avatar
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  2. #2
    Veteran SpursforSix's Avatar
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    It's sad but if he would have spent any time 1) understand the trading mechanism and more importantly 2) asked someone else or call the brokerage firm, this could have been avoided.
    Obviously, he shouldn't have been trading at all if he didn't have the fundamental understanding of what he was doing. My guess is that when he filled out the qualification boxes to have a margin account, he might have lied about his net worth, income, and/or experience.

  3. #3
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    Glanced thru it, seems he killed himself before he even tried to verify the accuracy of the statement. Not to sound crude, but that's Darwinism.

  4. #4
    Veteran SpursforSix's Avatar
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    Glanced thru it, seems he killed himself before he even tried to verify the accuracy of the statement. Not to sound crude, but that's Darwinism.
    That's exactly what happened.

    Also, if that happened to me, I'd first call and see what was up. And if they told me I actually owed $750,000, I'd tell them good luck in getting me to pay it.

  5. #5
    Veteran InRareForm's Avatar
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    Yeah or just file bankruptcy and wait 10 years tonstart over

  6. #6
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    That's exactly what happened.

    Also, if that happened to me, I'd first call and see what was up. And if they told me I actually owed $750,000, I'd tell them good luck in getting me to pay it.
    No . No debtors prison in the US. They can only send collections letters and then you move and don't give them your new address. Your credit stinks for 7 years but you don't have to actually pay back a red cent.

    What a dumbass

  7. #7
    Enemy of the System Millennial_Messiah's Avatar
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    Yeah or just file bankruptcy and wait 10 years tonstart over
    bankruptcies can last 7 years or a lifetime depending on the lender

    better to just have a defaulted collection tbh. Of course you can't do that on student loans but pretty much everything else.

  8. #8
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    bankruptcies can last 7 years or a lifetime depending on the lender

    better to just have a defaulted collection tbh. Of course you can't do that on student loans but pretty much everything else.

    Andy...do you know what bankruptcy is?

  9. #9
    Enemy of the System Millennial_Messiah's Avatar
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    Andy...do you know what bankruptcy is?
    I was pretty damn close in like March 2018.

  10. #10
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    Very sad story but not the kid's fault. Massive lawsuit coming for Robinhood and SEC.

  11. #11
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    My guess is that when he filled out the qualification boxes to have a margin account, he might have lied about his net worth, income, and/or experience.
    Irrelevant. Robinhood failed to complete basis due diligence and did not abide by Know Your Customer Rule 2090. Sad story for the kid, major class action lawsuit coming for Robinhood and the SEC. The fact of the matter is this would never happen at a reputable brokerage firm like Schwab, Ameriprise, etc.

  12. #12
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    Yea, I saw this.
    The article I scanned said he thought he owed $700K.
    Though it noted it excluded possible returns not showing up yet.
    What was the actual amount?

  13. #13
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    Yeah or just file bankruptcy and wait 10 years tonstart over
    I thought it was seven but could be more depending on situations.
    But yea; that's what I'd have advised.

  14. #14
    Veteran InRareForm's Avatar
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    Yea, I saw this.
    The article I scanned said he thought he owed $700K.
    Though it noted it excluded possible returns not showing up yet.
    What was the actual amount?
    I have read comments that the difference would have been maybe $500-2000 range

  15. #15
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    I have read comments that the difference would have been maybe $500-2000 range
    So, negligible.

  16. #16
    🏆🏆🏆🏆🏆 ElNono's Avatar
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    The whole gamification of the stock market is dangerous, and companies like this one are out there trying to prey on young children, tbh...

    The SEC should really clamp down on companies that make stock trading look like video games... this has real life ramifications.

  17. #17
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    The whole gamification of the stock market is dangerous, and companies like this one are out there trying to prey on young children, tbh...

    The SEC should really clamp down on companies that make stock trading look like video games... this has real life ramifications.
    I don't mind the discussion; but this guy was 20, not 16. Also, I suspect the parenting is not up to par here. That's the bigger issue, imo.

  18. #18
    Veteran SpursforSix's Avatar
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    Irrelevant. Robinhood failed to complete basis due diligence and did not abide by Know Your Customer Rule 2090. Sad story for the kid, major class action lawsuit coming for Robinhood and the SEC. The fact of the matter is this would never happen at a reputable brokerage firm like Schwab, Ameriprise, etc.
    You’re wrong about that to a large degree. In the past I’ve opened up margin/options/futures accounts without meeting the requirements. I don’t think any of them tried to validate anything. It shouldn’t be up to the broker to police a 20 year old who lying on his form.

  19. #19
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    Very sad story but not the kid's fault. Massive lawsuit coming for Robinhood and SEC.
    The the kids fault? Feel bad for anyone that dies but the 20 yr old "kid" shoulda informed himself.

  20. #20
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    You’re wrong about that to a large degree. In the past I’ve opened up margin/options/futures accounts without meeting the requirements. I don’t think any of them tried to validate anything. It shouldn’t be up to the broker to police a 20 year old who lying on his form.
    I agree. Robinhood actually gave the dude a generous opportunity to get rich FFS.

  21. #21
    🏆🏆🏆🏆🏆 ElNono's Avatar
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    I don't mind the discussion; but this guy was 20, not 16. Also, I suspect the parenting is not up to par here. That's the bigger issue, imo.
    Don't completely disagree with this. But it's a separate matter from appealing to the uneducated through gamification.

  22. #22
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    Don't completely disagree with this. But it's a separate matter from appealing to the uneducated through gamification.
    Fair enough. It is a separate issue.

    Gamification? I don't understand what you mean by that.

    Sure, there's ease of use for the app if that's what you mean. I question their extension of options credit regardless of "gamification".

  23. #23
    🏆🏆🏆🏆🏆 ElNono's Avatar
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    Fair enough. It is a separate issue.

    Gamification? I don't understand what you mean by that.

    Sure, there's ease of use for the app if that's what you mean. I question their extension of options credit regardless of "gamification".
    Making things seem like it's just a videogame to appeal to young kids, when it's real money, real people... gambling has been doing the same thing for a while now, and they've also been put on notice.

    Just read this update too:

    Robinhood Changes Trading App After 20-Year-Old's Suicide

    Friday Robinhood announced it was making a $250,000 donation to the American Foundation for Suicide Prevention, expanding its educational content about options trading, and rolling out changes to its in-app messages about multi-leg options spreads. And of course, they also announced that they're "working on changes to our user interface, including the way buying power is displayed.

    "These changes will take a bit of time to roll out, but our teams are hard at work."

  24. #24
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    Making things seem like it's just a videogame to appeal to young kids, when it's real money, real people... gambling has been doing the same thing for a while now, and they've also been put on notice.

    Just read this update too:

    Robinhood Changes Trading App After 20-Year-Old's Suicide

    Friday Robinhood announced it was making a $250,000 donation to the American Foundation for Suicide Prevention, expanding its educational content about options trading, and rolling out changes to its in-app messages about multi-leg options spreads. And of course, they also announced that they're "working on changes to our user interface, including the way buying power is displayed.

    "These changes will take a bit of time to roll out, but our teams are hard at work."
    Again, that's not really the issue. If a kid has $91 to invest and he loses it, then so what. If he makes money, nobody is certainly complaining. And if he has more money than that, then I'm okay with that too. Learn about life earlier. I also imagine Robinhood already has parental consent waivers as well. But if it doesn't, then that's good CYA to get. Frankly, the interface is not the issue. They could gamify it up all they want as far as I'm concerned. As long as they're following SEC rules, I don't see the problem.

    If there is any liability issue, it's with options and minors; but again this guy was not a minor. This is bad optics for them though; and is a big financial loss too for that matter. So, out of their own self interest I should think they'll be reviewing how they do those going forward.

  25. #25
    🏆🏆🏆🏆🏆 ElNono's Avatar
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    Again, that's not really the issue. If a kid has $91 to invest and he loses it, then so what. If he makes money, nobody is certainly complaining. And if he has more money than that, then I'm okay with that too. Learn about life earlier. I also imagine Robinhood already has parental consent waivers as well. But if it doesn't, then that's good CYA to get. Frankly, the interface is not the issue. They could gamify it up all they want as far as I'm concerned. As long as they're following SEC rules, I don't see the problem.

    If there is any liability issue, it's with options and minors; but again this guy was not a minor. This is bad optics for them though; and is a big financial loss too for that matter. So, out of their own self interest I should think they'll be reviewing how they do those going forward.
    I think there could be a number of liability issues, like false advertising, etc.

    Like I said, I don't completely disagree with the notion that, at the end of the day, you can't protect stupid from himself/herself. However, I do think there's some smoke and mirrors to try to prey on these people.

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