GameStop, if you're keeping score, is up "just" a little more than 600% year-to-date. Most of the stock's gains have taken place in the past week. Koss ( KOSS), a small Milwaukee-based firm, has soared 800% in 2021 - from just under $3.50 a share to about $47. But investors in headphone maker Koss have a message for millennial GameStop traders - hold my coconut pineapple hard seltzer. Sure, GameStop's ( GME) stock has surged this year.
The SEC said Robinhood benefited from executing the trades that weren't ideal for its customers, and that investors lost out on $34.1 million (even after taking into account the savings from the commission-free trades). But then again in December 2020, the company agreed to pay a $65 million fine to the SEC to settle similar charges - that Robinhood failed "to satisfy its duty to seek the best reasonably available terms to execute customer orders," and didn't disclose that it received payments for order flow. Robinhood said at the time that the charges no longer reflected their current practices. In 2019 the company was fined by a regulator for sending customer trading orders a few years prior to four broker-dealers without guaranteeing the best price. But it hasn't always been ideal for Robinhood's investors. That works out well for Robinhood, whose CEO has previously defended the practice to CNN Business' Matt Egan. Broker-dealers – including market movers like high-frequency trading firms – pay Robinhood for executing the trades with them. Here's how it works: Brokerage firms like Robinhood can cash in on where they send customers' trade orders. So how does the app make money? In part through a controversial industry practice known as payment for order flow. Robinhood is free for investors, touting itself as democratizing the world for young traders.
0 kommentar(er)
