With GameStop stock on 2021's craziest roller coaster ride (...yet), brokers, exchanges, and regulators across the country are all trying to figure out what, if anything, should be done about it.
But what happens when your entire business model is premised around facilitating retail investment? Of "democratizing" the market?
Ultra-popular trading app Robinhood is finding out how it feels to be stuck between a rock and a hard place.
There's nothing more scary than "it's for your own good"...in Virtual Legality.
#GameStop #Stock #Robinhood
Discussed in this episode:
"It appears Robinhood has stopped letting people trade GME..."
Tweet - January 28, 2021 - The One True Mango
"Robinhood reportedly locking out traders from GameStop, AMC, Nokia and others"
Seeking Alpha - January 28, 2021
"Keeping Customers Informed Through Market Volatility"
Robinhood Blog - January 28, 2021
Robinhood Customer Agreement
Updated June 22, 2020
"What We Do"
"Protecting the Retail Investor"
SEC Speech - March 21, 2014
"Power to the Players: Reddit and the GameStop Stock Explosion (VL398)"
YouTube Video - January 25, 2021 - Hoeg Law
"GameStop - "WallStreetBets" Booted by Discord, (Briefly) Reddit Private (VL401)"
YouTube Video - January 27, 2021 - Hoeg Law
Regulation D Offerings
SEC's "Investor" Webpage
"Capital Raising in the U.S...."
SEC Report - August 2018
https://www.sec.gov/files/DERA white paper_Regulation D_082018.pdf
Rule 506 of Regulation D
SEC's "Investor" Webpage
"Definitions and terms used in Regulation D"
17 CFR 230.501
"Online trading platforms see a surge in usage as Redditors take on Wall Street"
CNBC - January 27, 2021
"Wall Street, Big Tech Clamp Down on GameStop-Style Pumps; Biden Admin ‘Monitoring’ Situation"
CoinDesk - January 27, 2021
"Virtual Legality" is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).
CHECK OUT THE REST OF VIRTUAL LEGALITY HERE:
DISCUSSION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS LEGAL ADVICE. INDIVIDUALS INTERESTED IN THE LEGAL TOPICS DISCUSSED IN THIS VIDEO SHOULD CONSULT WITH THEIR OWN COUNSEL.
Joe Ellis (Logo Design)
Chris Leroux (Motion Graphics)
For more information: contact Chris at @Chrisleroux on Twitter.
PODCAST VERSIONS ALSO AVAILABLE
The Hoeg Law Firm is a business law firm with big law experience and a small firm approach focusing on start-ups, technology, financing, and everything else a business might need.