July 23, 2024

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77% of men and women surveyed consider Robinhood’s restriction of meme stocks for the duration of the GameStop frenzy was market manipulation, new report finds

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Robinhood on cellphone
Robinhood app

  • A study of 1,300 people today identified that 77% consider that Robinhood’s restriction of some shares in January was current market manipulation.
  • The study located that 39% felt the total party was “remarkable and superior”, although 17% felt it was “fascinating but a poor investment decision.” 
  • 28% explained the Robinhood frenzy was chaotic in a good way, though 15% felt it was detrimental. 
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A study by info analytics business Invisibly found that 77% of people believe that Robinhood’s restriction of sure stocks at the peak of the Reddit-fueled frenzy amounts to market place manipulation.

Commission-cost-free buying and selling app Robinhood has confronted considerable backlash and scrutiny in the weeks considering that January’s Reddit-fueled quick squeeze, with CEO Vlad Tenev grilled by legislators at February’s congressional hearing over the firm’s determination to limit purchasing of several of the “meme shares” at the coronary heart of the saga.

The move took the wind out of the momentum trade, and marked the conclude of January’s retail trader phenomenon. 

Now, a current examine by information analytics from Invisibly discovered that a the greater part of individuals surveyed imagine Robinhood’s restriction of meme shares was market manipulation.&#13

The analyze, which surveyed 1,300 folks for the duration of the to start with 7 days of February, also disclosed that 39% felt the industry mania was “remarkable and good” for buyers, although 17% felt it was “fascinating but a bad financial investment.” 

28% explained the trading phenomenon was a beneficial party, and “shaking points up from time to time is a excellent factor”, though 15% felt it was harmful to markets. Meanwhile, 40% of respondents believe that Robinhood and other retail trading products and services limited some shares to help hedge money. 

The survey paints a stark image of the public’s perception of what transpired in late January, irrespective of Robinhood stating that it limited buying and selling of some stocks thanks to clearinghouse requirements. 

GameStop shares rapidly climbed above 400% just before crashing again down to earth subsequent constraints from Robinhood and other brokerages. The occasion drew the eye of lawmakers and regulators, with the initially of three prepared hearings getting put last month. Congress read testimonies from the Robinhood CEO, famed GameStop retail trader Keith “Roaring Kitty” Gill, and Citadel CEO Ken Griffin. 

 

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