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A walk down r/WallStreetBets shows you that if there is an argument about a gov agency protecting unsophisticated investors, its failing spectacularly.
by conanbatt 7y ago
A walk down r/WallStreetBets shows you that if there is an argument about a gov agency protecting unsophisticated investors, its failing spectacularly.
- caro_douglos 7y agoStill loving that RH glitch which allowed a sophisticated investor to “utilize” more margins than they were entitled to. [1] There really should be another crack at trading places. I hope those accredited producers out there in Holywoot can make it happen. [1] https://www.cnbc.com/2019/11/05/some-robinhood-users-were-able-to-trade-with-unlimited-borrowed-money.html https://www.cnbc.com/2019/11/05/some-robinhood-users-were-ab...
- gruez 7y agoI think you're misunderstanding the threat model. It's designed to protect unsophisticated investors from fraudsters, not from the investors themselves.
- johnbrodie 7y agoIf that's the case, why do Pattern Day Trader rules exist? They seem to generally cover "protecting you from yourself", not from some third-party.
- conanbatt 7y agoI don't think this is true. A clear example is startup stock-options. It is legal for the company to give you that as compensation, you historically get taxed for that compensation, it is legally mandated to get appraisal by a third-party company, but it is generally illegal to offer them for sale in the public.