House Financial Services Committee legislature interviewed top executives at Robinhood Markets Inc and other companies that have a role in GameStop Corp. Saga during a hearing shedding light on the pitfalls of individual investors in the age of social media and smartphone trading apps

The video game retail stock holdings soared from $ 18 last month to over $ 48084 at the start of 2021, the surge was fueled in part by an army of bullish retailers admonishing each other to buy stocks and options on platforms like Reddit and squeeze the hedge funds that are short selling the stock

The episode has raised questions about the integrity of the market and the federal investigations into possible market manipulation. Prosecutors have cited information from brokers such as Robinhood, the popular online broker that many individual investors have traded GameStop and other stocks with

Ken Griffin of Chicago hedge fund Citadel LLC and market maker Citadel Securities; Robinhood Co-Founder Vlad Tenev; Keith Gill, the once anonymous trader who uses the online alias “Roaring Kitty,” and others testify

Read prepared testimony from the hearing: Ken Griffin | Keith Gill | Gabe Plotkin | Vlad Tenev | Steve Huffman | Jennifer Schulp

The subject of Tesla Inc Stocks, with Melvin Capital’s Gabe Plotkin saying his law firm held a bearish position at Tesla years ago in response to a legislator’s question

Tesla and GameStop Corp Both were popular bearish bets with investors, and the huge surge in the stock burned their short sellers. The battle between bullish and bearish investors on both stocks has impacted social media

Tesla shares are up around 11% this year after a meteoric rise in 2020. GameStop shares are up more than 130%

Congressional Democrats typically advocate financial inclusion, including easier and fairer access to home finance for individuals and small business loans, however, Robinhood’s free trading app seems a step too far for some

This is because commission-free trading is enabled by paying the flow of orders where online brokers like Robinhood send orders to market makers like Citadel Securities for execution, Citadel CEO Ken Griffin said Thursday the system was up “Very important to the democratization of finance. This has enabled US retail investors to have the lowest execution costs ever”

Mr Sherman suggested that Robinhood customers would pay through substandard trade processing instead, as Robinhood disproved their orders to large, well-informed dealers like Citadel Griffin

GameStop Corp. shares briefly on Thursday when Keith Gill began speaking at the House Financial Services Committee hearing

The video game company’s shares were traded before and after the hearing started at Jan.Midnight traded in a narrow range around $ 44. They then rose sharply, with stocks trailing Mr. Gill started his opening speech

Mr Gill, the once anonymous trader who goes by the alias “DeepF — ingValue” on Reddit, has become something of a legend for the WallStreetBets online community. Mr. Gill was one of the earliest individual investors to place bullish bets on GameStop which made him big profits when the company’s share price soared in January

On Thursday, Mr. Gill emphasized in the testimonial that he is not a professional investor and does not offer personalized investment advice

Earlier this month, Mr. Gill announced he would pause his regular updates to his GameStop inventory on Reddit This week, WallStreetBets users offered their support, with one user, u / Brunchtime27, posting an “Ode to DeepF — ingValue” on Wednesday ” / p>

“I love you man,” the user said, “Your written testimonial is spot on and I really wish you the best in everything”

Vlad Tenev, Robinhood Markets IncThe CEO said that 13% of his customers make options trading on a monthly basis

Options trading is at the heart of GameStop Corp. Landed mania as many investors turned to bullish option bets tied to the retailer to capitalize on the stock’s rising price
Such contracts allow investors to buy or sell stocks at certain prices at a later date. Options also allow investors to deposit a small amount for a potentially oversized return if their stakes prove to be correct

GameStop option volume soared to unprecedented levels, and options trading across the market has peaked this year.Some traders have said that GameStop-related options activity at times influenced the wild moves in the stock Keith Gill, who is on YouTube with “Roaring Kitty” has offered GameStop calling options

Options trading has seen a boom over the past year as millions of new traders flocked to Robinhood and other brokers to take advantage of the extreme volatility of the market. Activities this year are on track to break record volumes in the Outperforming Last Year According to Options Clearing Corp. this year, an average of 43 million contracts changed hands every day, an increase of 47% compared to the previous year data

Robinhood has been criticized for making risky option bets too easy for beginners to make risky options bets. They have placed fewer barriers to accessing options for new traders compared to other brokers, the Wall Street Journal reported, Tenev said in its written testimony that the company added “more protection and information” to its app

Rep Maxine Waters (D, Calif) controversial GOP Michigan Rep. Bill Huizenga, who called Thursday’s hearing “political theater” “

“I appreciate all of the members attending today This is not political theater at all. This is a serious oversight responsibility and members are reminded not to harm the motive of other members “Miss Dr Waters, the chairman of the committee, said

Both Ms. Water and Rep. Patrick McHenry (R, NC.), the top Republican on the committee, supported the holding of the panel, even though Mr. McHenry told reporters prior to the hearing that he expected the two parties to differ on approaches after they actually found work

Keith Gill

World News – USA – GameStop Heard Live Updates: Keith Gill and CEOs of Robinhood, Reddit Testify – WSJcom

Source: https://www.wsj.com/livecoverage/gamestop-stock-hearing-keith-gill-reddit-robinhood