3 ms·

What would even lead you to believe they are in danger of becoming insolvent? They had some severe technical issues and a ridiculously long downtime yes, but a

by Ameo 7y ago

What would even lead you to believe they are in danger of becoming insolvent? They had some severe technical issues and a ridiculously long downtime yes, but at the end of the day their company is still operating just the same as before.

brenden2 7y ago
There are a lot of unhappy customers which are probably trying to get all of their money out of Robinhood ASAP, myself included. It's not unthinkable that they may run into problems and become insolvent due to the unexpected outflows.
- rglover 7y ago
  You're underestimating the value of convenience for most folks. I'd venture a guess that a lot of Robinhood's users are typical retail investors, some pretending to be day-traders. Most will talk big about leaving and then end up staying put anyway because it's easier than jumping ship.
- rwmj 7y ago
  It might be a naive question, but if you buy shares through Robinhood then don't you just own those shares? It might take some time to transfer them to your preferred broker, but I don't understand why you'd lose anything in an insolvency. Plus any cash you had would be held in a customer account, so again it's simply a matter of dividing up that cash between customers according to their balances. (Note: I've never used Robinhood, so I'm assuming they're a regular stockbroker with added Silicon Valley hype, rather than something else)
  - yellowapple 7y ago
    I think that is indeed the case for actual shares (I was certainly able to participate in Rite-Aid's most recent Board of Directors election, solely based on the shares I bought through Robinhood), but I'm curious about how it'd apply to cryptocurrency, since Robinhood (last I checked) doesn't expose the private keys for the underlying wallets or otherwise offer a mechanism to transfer crypto assets out of Robinhood. Not that it really matters for the, what, $2 I put into Dogecoin, but still.
im3w1l 7y ago
They may have had users with margin and/or option sellers whose positions they were unable to force close.

by Ameo 7y ago

brenden2 7y ago

There are a lot of unhappy customers which are probably trying to get all of their money out of Robinhood ASAP, myself included. It's not unthinkable that they may run into problems and become insolvent due to the unexpected outflows.

rglover 7y ago
You're underestimating the value of convenience for most folks. I'd venture a guess that a lot of Robinhood's users are typical retail investors, some pretending to be day-traders. Most will talk big about leaving and then end up staying put anyway because it's easier than jumping ship.
rwmj 7y ago
It might be a naive question, but if you buy shares through Robinhood then don't you just own those shares? It might take some time to transfer them to your preferred broker, but I don't understand why you'd lose anything in an insolvency. Plus any cash you had would be held in a customer account, so again it's simply a matter of dividing up that cash between customers according to their balances. (Note: I've never used Robinhood, so I'm assuming they're a regular stockbroker with added Silicon Valley hype, rather than something else)
- yellowapple 7y ago
  I think that is indeed the case for actual shares (I was certainly able to participate in Rite-Aid's most recent Board of Directors election, solely based on the shares I bought through Robinhood), but I'm curious about how it'd apply to cryptocurrency, since Robinhood (last I checked) doesn't expose the private keys for the underlying wallets or otherwise offer a mechanism to transfer crypto assets out of Robinhood. Not that it really matters for the, what, $2 I put into Dogecoin, but still.

im3w1l 7y ago

They may have had users with margin and/or option sellers whose positions they were unable to force close.