Robinhood CEO Vlad Tenev, 33, last night defended firm’s decision to sell users’ shares without permission
‘We had to make a very difficult decision. It’s been a challenging day,’ Tenev told MSNBC
What’s your point? Do you even know what a Margin Call is?
If I am under water on a purchase ON MARGIN, and I don’t post the margin capital required by regulatory rules the position gets sold to settle the debt and any debt left is the obligation of the investor.
This is not a hard concept. It’s the REGULATORS that set that rule, not Robinhood. But Robinhood HAS TO COMPLY with that rule or lose their broker/dealer status.