I invest a little (very little) from each check in stocks on Robinhood/stash and a lady at my job made a ton with gamestock. Why is there so much outrage if a bunch of ppl buy a stock? I have like five thousand dogecoins and I see that has doubled in price.
You're viewing a single comment thread. View all comments, or full comment thread.
Comments (23)
sorted by:
You've got some good responses here with respect to how it all works. I'll try to give an idea why at least in my opinion those of us our our side (sanity and free markets) are pissed. With respect to what's happening to the stock price it's all legal and I think most of us were just laughing.
But now, you've got trading platforms just straight up restricting transactions because they want to. Not because the SEC or the law tells them to, but to save their friends or side investments. Robinhood and TD Ameritrade are the ones getting the press for doing this.
There are reasonable restrictions a brokerage could do examples:
Then we have the unreasonable stuff, the main one being like what I'm hearing about Robinhood, in that for these certain stocks (e.g. GME) you can only sell them. They are just straight up not processing anything but sales. I'm not sure it's legal in the pre-one-party state sense. That's not to say that any order you put in is guaranteed to be filled, but you know allow the order. In a general sense a common market order for quantities most of us would be dealing with will get filled. If you do limit orders like I usually do, as soon as the Bid or Ask with enough quantity hits your limit price, you expect it to get filled.
A brokerage telling me they have decided they will not process legal orders as I have written them is one that would be losing my business. It's just way too much of a slippery slope. What happens when there's a huge drop and I want to sell on the way down, or more like me I want to buy some stuff after the huge drop for bargain prices, and they tell me "nah, we've decided you can't place that order because it doesn't benefit us"?
Is there any point for me to buy GME right now?
My opinion, no, I think the boat has been missed on it and now that a lot of the brokerages are limiting it then being able to manipulate the price up has lost some of it's strength. I'm not a super risky investor or a wall street bettor though. The underlying situation of it being way over-shorted is still out there, so I suppose it could still be squeezed again. Probably better to look for some stock gambler types over me to ask about it.
Yes: sticking it to the man!
Thanks for the breakdown. I get why regular people are pissed with the brokers.
Yeah it's one of those type things when you have AOC and Ted Cruz agreeing on something you know it's totally screwed up. Because at the very least it seems for politicians both of those stick to their principles or lack thereof.