Even before GameStop stock frenzy, Robinhood raised a lot of red flags
By Richard Nieva
Robinhood, the stock trading app at the center of the bizarre GameStop saga, has long been controversial. Even before the run-up of GameStop and other stocks like AMC and BlackBerry elevated the fee-free service to a household name, Robinhood had been accused of downplaying the risks of stock trading, essentially presenting complex financial instruments like a game in its effort to draw in young people and new investors...
Coye Cheshire, a professor at the UC Berkeley School of Information, says no one knows how the situation on the stock market -- which has now swept up shares of AMC, Koss and others -- will play out. But if major hedge funds, which were the target of the r/WallStreetBets mob, can get wiped out, so can a lot of regular people.
"The app makes [trading] seem fun and easy, but the market is really complicated," Cheshire said. "That can be dangerous."