Robinhood CEO, Vlad Tenev, raised questions when he decided to stop trading on multiple popular stocks. Many stocks were frozen – among them were GameStop and AMC Entertainment.
Dalton Pharris, a Business Management major voiced his opinion as to whether or not the Robinhood CEO should face consequences.
“Absolutely, and they are going to win over 30 class action lawsuits. I wouldn’t be surprised if the whole thing just shuts down. The irony in the name Robinhood is they were literally ‘robbin’ the hood.’ I fully believe the CEO should be jailed for taking money away from millions of people,” Pharris said.
After Tenev faced criticism, Robinhood boosted its trading limit on GameStop to 20 shares Monday, up from one share, according to a CNBC report. Tenev will testify in front of the U.S. House Financial Services Committee on Feb. 18, 2021. This is due to Tenev’s effort to prevent average investors from buying shares of GME stock.
Reddit users sent certain stocks higher by buying up shares on GameStop, which is referred to as undermining. r/WallStreetBets is the group that pressured stocks to soar. Wall Street and Internet Traders conflicted by pushing up shares when those betting against GameStop were aggressive with their bets against the company. The group members of r/WallStreetBets have the ability to use their own money to push stock prices higher. This left those who bet against GameStop to lose money.
The r/WallStreetBets group has nearly nine million members involved in the thread. As the number of followers increases, the amount of shares in stocks bought will rise. This will be a challenge for Wall Street since they will be outnumbered. People are calling for free stock trading so that every individual has the power to be a part of the stock market. Recently, the price of GameStop stocks went from around $15 dollars to $483 dollars per share. Due to this uncommon jump, Netflix is planning a series over the battle of hedge funds and typical traders, the traders that boosted sales.
“My advice would be to talk with someone who has experience in investing. That could be a friend, relative or a financial adviser. Also, start small and don’t be afraid!” Larry Taylor, Tech alumnus and financial adviser, said when asked for guidance that might help someone who is interested in learning more about investments.
The stock market may not be predictable, but one can learn how to invest in stocks by starting with a small amount of money. In time, those profits can turn into a significant gain allowing more opportunities for future investments. Researching various stocks as far as each company’s financial data, competitive edge compared to others, and potential risks are all important aspects to consider when investing in stocks.
Dogecoin is an easy cryptocurrency investment to make. Following Elon Musk tweeting about this particular stock, it surged over 600% in a short amount of time.
“I heard about Dogecoin on Twitter a few months back. I saw it and put money in praying it was just enough of a joke to work. I personally would love to see Dogecoin hit $1, and that seems to be the common goal. Of course, it’s currently at $0.08, so that will be a while,” Pharris said.
With all the publicity surrounding the stock market over the past couple of months, interest in investing has been on the rise. Risks are high, but they can also gain significant rewards if done correctly. Gaining knowledge from educated, reliable sources is an essential part of the process that one must follow in order to be successful.