4 ms·
What is the purpose of such small fines? Their valuation has gone from 1.3B in 2017 to 10.2B in August 2020 [0]. Only having to pay a $65m fine for that amount
by deegles 6y ago
What is the purpose of such small fines? Their valuation has gone from 1.3B in 2017 to 10.2B in August 2020 [0]. Only having to pay a $65m fine for that amount of growth sounds like a great deal. /s
Obviously it's more relative to their revenues but it still seems like peanuts.
[0] https://www.businessofapps.com/data/robinhood-statistics/ https://www.businessofapps.com/data/robinhood-statistics/
- andris9 6y agoI assume they can't pay the fine with their stock
- eru 6y agoIndirectly, they can: issue some more stock, and pay the fine with the cash earned.
- SpicyLemonZest 6y agoThe purpose of such small fines is to serve as a proportional deterrent to the misconduct they committed. The charge is that Robinhood falsely claimed their prices were lower than the competition; they shouldn't have lied, but that's hardly the crime of the century.