False advertising how?
Depends how they advertise their platform. I'm not privy on Robinhood specifically, but I do know some gambling companies got caught red handed by advertising free this, free that, this is a game, have fun, then bait and switching into subscription fees, etc.
Some of that was also going on with paid loot boxes in videogames. I know the some EU countries clamped down on that, some outright outlawed it.
Their basic trading services are free. Options is probably a part of Robinhood Gold or whatever. I would think they have various disclaimers for investors taking it to that level; but they are known for taking more shortcuts or being less thorough than the more established brokerages.
On a side note: I'm happy Robinhood came along; their business model forced the others to go commission free. Less barriers to trading is good from my perspective.
I'm not against it, but they're not completely free. There's always fees, and sometimes they're in very fine print. And frankly, the stock market is nothing like it used to be. It's all short term, high speed and algorithmic trading, etc. I mean, you can still make money going long or with certain stocks, but in this day and age, prince from arabia farts, and you get some swings. IMO, it lost it's original purpose, which was primarily to fund long term growth in companies. That's all in venture capital now.
Stocks may have evolved or devolved based on one's perspective. But I think they do serve to create a needed equity backing in the world. Good for short, long, or dividend investors. My pet peeve is companies just making up stock like the govt. prints money and giving them to execs as "bonuses". To me, that practice needs to be shut down. But since it helps the elites who basically make and enforce the rules, I doubt that's going to happen.
At the end of the day, it's all fiat money
Money for nothing and the chicks for free.
great song, tbh
I’d like to hear exactly what he traded. In the quote above, Robin Hood is making changes to their multi-leg options spread. If that was what he was doing, it would seem like he had more than a passing interest. To end up with a negative amount, it seems like he would have had to have a margin account as well. I don’t think this is a case of some uneducated dude just making one unlucky trade.
Yup. I would also like to know how much $ he put in vs how much robinhood let him leverage for that money, and how difficult was for the kid to create one of those margin accounts.
Lost in all this, is this kid thought his life was over, when even if he was minus 700k he could have just filed for bankruptcy and been ed for 7 years.
Holy . I have heard that song maybe a couple hundred times and had the cassette back in the day.
I was about to inform you that it's "checks for free".
Ala Camel Joe, flavored-tobacco and other marketing to get kids onto niccotine.
I can understand that to a sense, but this dude is 20 years old, not a kid.
How long should any business/society expect themselves to be responsible for a grown adult?
The Kearns believe Alex's inexperience is what got him into trouble after a transaction last year. On June 11, he saw Robinhood restricted his account reflecting what appeared to be a negative balance of $730,000.
Later that night, at 3:26 a.m., the company sent an automated email demanding Alex take "immediate action," requesting a payment of more than $170,000 in just a few days.Robinhood had no customer service phone number, but Alex emailed its support address three times late that night and the following morning. He asked for help understanding what had happened, and whether he could still offset the losses with another trade.
Alex wrote, "I was incorrectly assigned more money than I should have, my bought puts should have covered the puts I sold. Could someone please look into this?"
In response, he received an automated message: "Thanks for reaching out to our support team!" The email said, "We wanted to let you know that we're working to get back to you as soon as possible, but that our response time to you may be delayed." The company assigned him a case number, 06849753.
https://www.cbsnews.com/news/alex-ke...ul-death-suit/The day after Alex took his own life, Robinhood sent an automated email suggesting the trade had been resolved and he didn't owe any money.
"Great news!" The email read, "We're reaching out to confirm that you've met your margin call and we've lifted your trade restrictions. If you have any questions about your margin call, please feel free to reach out. We're happy to help!"
They wanted him to pay 170k when in actuality he owed zero, goddamn.
This is why you just diamond hands until green. /s
I wasn't a user back then, but Robinhood's margin investing had some big problems initially.
There's the famous "guh" incident caused by their lack of proper margin restrictions.
https://www.insider.com/steelworker-...-losses-2021-3
Over 9000 seems small, but I guess when bills are piling up it's a lot for some
It's over nine thousaaaaaaaaand!!!
9000 is not a lot of money it's about a half month's worth for me after taxes and expenses.
Tragic. But impossible to know the whole story. Who knows what kind of person he was and how much he owed. Also, $9000 is a life savings for probably the vast majority of the world.
Also, I'll add on that it's pretty much gambling for a lot of "investors". So if you believe that gambling should be heavily regulated, then it should apply to stock trading.
But that will never happen because the top end need the little guys to dump stocks into.
That's a lot of Arby's
But how much gasoline in Obama (whoops I meant Biden)'s America?
That would get you almost 4000 gallons in SA.
So about 1500-2000 gallons in CA and about 2500-3000 in Michigan?
Spurtacular help me out, how much is gas per gallon from a reputable gas station (i.e. top tier, not from Costco/Sams/Walmart or some sketchy mom and pop no-name convenience store).
Where you live
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