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Let's say RobinHood went out of business tomorrow. What would happen to all the stocks held by their customers?
by AznHisoka 7y ago
Let's say RobinHood went out of business tomorrow. What would happen to all the stocks held by their customers?
- TheHypnotist 7y agoThis should explain it. https://www.investopedia.com/articles/investing/050515/what-happens-when-stock-broker-goes-bust.asp https://www.investopedia.com/articles/investing/050515/what-...
- AznHisoka 7y agoOK, that's sensible. So I guess there's really no need to do anything dramatic if you're a Robinhood customer, if you don't have over $500K in cash/securities.
- brisance 7y agoRobin Hood customers absolutely should consider switching. These are the basics, and they can't even get it right. Would you trust a GP who didn't know how to use a thermometer? What happens if it's the other way around, and the customer's account shows a net profit but their books don't reflect that?
- AznHisoka 7y agoIt's a bug with a non-normal use case. Most people don't use margin, and they don't sell covered calls, let alone do both. I just buy and hold regular shares, so I don't forsee how they can mess that up in anyway. If they do, I definitely will move my account elsewhere. But for now, it's still a huge hassle to move everything to another brokerage.
- cma 7y agohttps://en.wikipedia.org/wiki/Securities_Investor_Protection_Corporation https://en.wikipedia.org/wiki/Securities_Investor_Protection... https://www.barrons.com/articles/testing-the-limits-of-brokerage-account-insurance-1430529930 https://www.barrons.com/articles/testing-the-limits-of-broke...