Robinhood’s Role in Stoppage of Trading on GameStop Share

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Robinhood’s Role in Stoppage of Trading on GameStop Share
In January 2021, GameStop's shares skyrocketed 400%, reaching a 1,625% gain at the end of the month. The surge resulted from the Reddit stock trading community (WallStreetBets) driving a coordinated effort to increase GameStop's stock shares. Then, GameStop was a struggling brick-and-mortar video games retailer on the stock market and was among the most heavily shorted stock in the market. The drive was partly motivated by the collective desire to devastate short-sellers and financial institutions. The inherent argument is that Wallstreet is rigged and works in favor of the wealthy, where the wealthy make money on the backs of small traders. Thus, the movie is an online version of the Occupy Wall Street Movement that began a decade ago. At the center of the controversy is the free and popular trading application called Robinhood.
Robinhood is a financial services organization established in 2013. The purpose of the company is to help traders make fee-free investments to democratize the financial system. The company's purpose is popular among most traders trying to make money from an economic system perceived to be rigged in favor of the wealthy. The company's main product is the Robinhood Application, through which traders buy and sell investments with little effort. Given the increase in smartphone and PC ownership and internet penetration, Robinhood offers trading solutions to people who would otherwise not trade if the convenience was unavailable. In most cases, this category of traders is also referred to as small investors, and they make the majority of traders on the stock market. However, this group also enjoys the most negligible returns compared to the wealthy 1% on Wall Street.
Therefore, to drive up the stocks shared by the struggling GameStop, Robinhood was the best available option to achieve th...