Creative Medical Technology Holdings Inc (CELZ)

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Investors angry with investment app Robinhood after stopping trading


American amateur investors are angry with investment app Robinhood after it stopped trading in stocks due to recent volatility. The immediate cause is the manic price increase of the share of game seller GameStop.

Investors have started a petition to have the app removed from the Apple App Store, arguing that negative reviews will not be posted.

But Robinhood's CEO points out the capital requirements that a stock trading broker must meet. With strong price swings due to speculation from a group of investors on Reddit's WallStreetBets forum, these are at risk. As a result of the decision of Robinhood and other investment platforms, the price of the shares has fallen sharply.

The price increase of the shares of GameStop and other companies of little interest such as AMC and BlackBerry is interpreted as a joke to thwart investment companies speculating on a price drop. Eventually the joke turned into a kind of tulip mania that also attracted other investors.

Various members of the US Congress want to gain more insight into the special price development of a number of shares on the stock exchange through hearings. They also want to further investigate the alleged harmful role of hedge funds.