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If a broker blocks selling, and the price drops, there is real damage to the holder of the shares. If they block buying, there is only a potential hypothetical
by herodotus 6y ago
If a broker blocks selling, and the price drops, there is real damage to the holder of the shares. If they block buying, there is only a potential hypothetical loss.
- CivBase 6y agoYou're only looking at longs. If a broker blocks buying and the price goes down, there are real benefits to the holders of the shorts. Hence the concerns of market manipulation.
- JumpCrisscross 6y ago> If a broker blocks buying and the price goes down, there are real benefits to the holders of the shorts Which is not an actual harm to a Robinhood user. Avoiding liability means avoiding actual harm.
- CivBase 6y agoWhy is it okay for a broker to facilitate market manipulation as long as it doesn't harm their customers? If they're benefiting someone (in this case, the short sellers), then they must also be harming someone (in this case, the short lenders).