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I couldn't buy and the stock went up = theoretical loss I couldn't sell and the stock went down = real loss Generally you are only liable for actual losses in
by treis 6y ago
I couldn't buy and the stock went up = theoretical loss
I couldn't sell and the stock went down = real loss
Generally you are only liable for actual losses in court. So stopping the purchase of GME comes with little liability while stopping the sale could open them up to lots of liability.
- totony 6y agoBut blocking buying on the broker with the most trades = price falls down = real loss?
- treis 6y agoYou're still going after theoretic damages. How do you prove that Robinhood stopping trading drove the price down and by how much?
- totony 6y agoIt's simple economics, if you block demand but keep constant supply (in this case increase), the price will go down.
- treis 6y agoYes, that's the theory behind the theoretical loss. That's different from "I tried to sell at $200, you didn't let me, and now I can only sell for $100". In that case I am out an actual $100 that is directly tied to your actions.
- totony 6y agoEverything can be said to be "theoretical". Theoretically you would have found a buyer had you tried to sell at 200, but nothing guarantees it