What happens when you democratize access to the stock markets? Robinhood, a no-commissions trading app, has been finding out—for better and for worse. On the one hand, the company’s fee-free structure and easy-to-use design have earned it more than 13 million users and a valuation approaching $12 billion; Robinhood has also filed to go public in the next few months. On the other, it was slapped with a $65 million SEC fine for misleading business practices, and some critics say its low barrier to entry and gamelike design encourage inexperienced traders to take big risks. Those concerns came to a head in January, when investors used Robinhood and other platforms to trigger a spike in shares of retailer GameStop. While some profited, many eventually wound up in the red. New regulations may emerge in the aftermath, but it’s clear that apps like Robinhood have changed the trading game forever.
- The Inside Story of Princeton's Cinderella Run at March Madness
- The Case for Betting on Succession's Tom Wambsgans
- For Both Donald Trump and Alvin Bragg, the Central Park Jogger Case Was a Turning Point
- If Donald Trump Is Indicted, Here's What Would Happen Next in the Process
- Alison Roman Won't Sugarcoat It
- Why Not All Observant Muslims Fast During Ramadan
- It's Time to Say a Loving Goodbye to John Wick
- Who Should Be on the 2023 TIME100? Vote Now
- Column: Ozempic Exposed the Cracks in the Body Positivity Movement