>The implication here is that there were not any "extenuating circumstances," and by that I mean that the circumstances were artificial and were the result of a direct action made by Robinhood as a result of their own poor business practices. It is not an uncommon occurrence for a retail broker to deal in high-risk securities on their clients behalf, and for those high-risk securities to vary wildly in price and liquidity.
People buying high risk securities isn't uncommon, but everyone piling on to the same high risk security at the volumes seen that week is uncommon.
>Likewise, it is not unreasonable for investors to expect that a broker would actually possess the shares that the investor has purchased, and it is expected that the broker would make a timely effort to procure actual shares after acknowledging that an order was filled.
Did robinhood fail to do deliver shares? Also keep in mind robinhood doesn't operate like amazon. They're not fulfilling orders from shares they have on hand. Them being able to deliver the shares is contingent on the clearinghouse being able to deliver the shares. Them not being able to because the clearinghouse and/or their counterparties weren't able to shouldn't really be blamed on robinhood themselves.
People buying high risk securities isn't uncommon, but everyone piling on to the same high risk security at the volumes seen that week is uncommon.
>Likewise, it is not unreasonable for investors to expect that a broker would actually possess the shares that the investor has purchased, and it is expected that the broker would make a timely effort to procure actual shares after acknowledging that an order was filled.
Did robinhood fail to do deliver shares? Also keep in mind robinhood doesn't operate like amazon. They're not fulfilling orders from shares they have on hand. Them being able to deliver the shares is contingent on the clearinghouse being able to deliver the shares. Them not being able to because the clearinghouse and/or their counterparties weren't able to shouldn't really be blamed on robinhood themselves.