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Better for the retail investors? No. For the retail investors, if a broker didn’t foresee systematic risks and cannot clear, the better thing can happen is the
by franklampard 6y ago
Better for the retail investors? No.
For the retail investors, if a broker didn’t foresee systematic risks and cannot clear, the better thing can happen is the broker own up to mistakes and go bankrupt.
Bankruptcy is legal and investors understand such risks.
- slg 6y ago>Bankruptcy is legal and investors understand such risks. The type of retail investor that is using RH doesn't understand the bankruptcy process and certainly wouldn't be happy to be stuck in SIPC limbo while the value of their stock plummets. When it comes to what is best for RH users, this seems like it was one of the least bad options among a collection of horrible options that are due to the way RH is managed.
- franklampard 6y ago> The type of retail investor that is using RH doesn't understand the bankruptcy process That's your rationale for manipulating the market? SMH