Read more: GameStop stock spike lingo: This is what Reddit's WallStreetBets vocabulary means What is Robinhood? Here's what you need to know about Robinhood, its past and recent controversies, and how it works.
But on Friday, without mentioning Robinhood by name, the Securities and Exchange Commission said it would "closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities." In a second blog post published Thursday afternoon, Robinhood said it would reopen limited trading of the stocks on Friday. Even before trading had closed on Thursday, a lawsuit seeking class-action status against Robinhood had been filed in New York. The popularity of the app was evident on Wednesday, when Robinhood jumped to the top spot in Apple's App Store and notched a record 2.6 million daily active users, according to data from tracking firm Apptopia.Ī day later, however, Robinhood had fallen from favor with the group because it had restricted some activity such as GameStop trading, along with some other active stocks, limiting users to closing out positions rather than opening new ones. Traders from the r/WallStreetBets forum used the fee-free stock-trading app and others like it to push shares of the beaten-down game retailer 14,300% higher over the past few months, making short-selling hedge funds howl in pain. When a Reddit community banded together to punish Wall Street investors who had bet against GameStop shares, one app stood out as a weapon of choice: Robinhood. Readers are part of the CNET family, and the strength of that relationship is the ultimate test of our success. We ask that you inform us whenever you find an error, spot a gap in our coverage, or have any other suggestions for improvement. We scour and scrutinize blogs, sites, aggregators, RSS feeds, and any other available resources, and editors at all levels of our organization continuously review our coverage.īut you're the final judge. How will we know if we're fulfilling our mission? We constantly monitor our competition, user activity, and journalistic awards. We promise to publish credible information we have as soon as we have it, throughout a product's life cycle, from its first public announcement to any potential recall or emergence of a competing device.
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