The Senate Banking Committee began its public probe of the GameStop saga on Tuesday, with Democrats and Republicans staking out opposing positions on the value and dangers of a new retail trading landscape characterized by firms like Robinhood that offer no-commission trades and easy-to-use smartphone applications.
GameStop shares have whipsawed from roughly $17 per share to start the year to an intraday high of $483 in late January, to below $40 just a few weeks later. They are up roughly 124% in March at more than $240, according to FactSet. Republicans on the committee were eager to defend Robinhood and innovations in financial technology that have led to free stock trades being the industry standard.
“If payment for order flow were restricted or banned, zero-commission trades would likely disappear,” Michael Piwowar, executive director of the Milken Institute Center for Financial Markets and former acting chairman of the Securities and Exchange Commission, told senators at the hearing. He added that elimination of payment for order flow would encourage brokers to engage in so-called “churning” or overtrading a customer’s account in order to generate more commissions.
Yes. It shows people will take a large risk to get out of the depths also. Aka the job market and shit ain’t providing. In laments terms.
Tell them to piss off, professionally. The stock market has been detached since summer of 2020, but all of a sudden when swarms of retail traders are able to capitalize on a trade, all of a sudden it's 'detached'. From March 23, 2020 to now, the $SPY has risen from ~$220 to $389.
Did he figure that out all by himself?