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Thought experiment: Lets say everyone(or just the people who are in GME) decided to liquidate their holding on RH now, ie. they are fed up with that exchange f
by subsubzero 6y ago
Thought experiment:
Lets say everyone(or just the people who are in GME) decided to liquidate their holding on RH now, ie. they are fed up with that exchange for various reasons. From what I understand they would not be able to pay out funds to sellers? If so this would create a 1920's style run on their exchange that could spill over into other exchanges? I am genuinely curious as it would behoove RH to let people keep buying vs. sell only.
- tedunangst 6y agoYou wouldn't be able to transfer the money out until it settles.
- proverbialbunny 6y agoStock has a 2 day settlement period, so Robinhood could pay out, but it would have a 2 day delay before an ACH transfer would start when liquidating their account.