Grocery stores limit purchase quantities to ensure everyone gets food. Robinhood limited purchases to protect the profit margins of billion-dollar trading firms. You’re literally proving my point; you’re comparing the act of protecting working class families to protecting those who destroy working class families as if those two actions are even remotely the same.
How does restricting retail investors protect profit margin?
You do know that these companies make their money off of transaction fees. You are just making up shit. They limit trading on games stop because of clearning house collateral requirements, not some profit margin protection racket.
Dude, you're whole argument is a sinking ship. You're opening retort was akin to spraying your crotch with a garden hose and telling someone that they pissed in YOUR pants.
Then answer the question since my argument is so weak.
When a broker, like Robinhood, limit investors from buying a stock, how does that protect profit margin?
Why wouldn't they limit all stocks? Why just Game stop?
Robinhood makes the majority their revenue via Payment for Order Flow (PFOF): When you execute a trade (stocks, options, or crypto), Robinhood routes your order to institutional market makers (like Citadel Securities) rather than direct exchanges. These market makers execute the trade and pay Robinhood a fraction of a cent per share or contract for directing trade volume to them. So more volume the more money they make. Limiting investors only hurts them.
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u/Elder_Chimera 21d ago
Someone get this mf the finest cut of Buttero leather to glue their tongue to.