HOOD - HOOD Stock: Is Robinhood Following the SEC's Short-Selling Rules?
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Robinhood (NASDAQ:HOOD) stock is in the spotlight today as investors react to news of a probe from the SEC.
That probe was revealed by Robinhood in a filing with the SEC. The filing reveals that the agency’s Division of Enforcement initiated a probe into the company back in October 2021. IN the second quarter of 2022, additional information was requested for the investigation.
According to Robinhood, it’s complying with this investigation. The company notes that the SEC probe has to do with Regulation SHO, which covers short selling. Also included in the probe are other “securities lending and fractional share trading,” questions.
It’s worth pointing out that this isn’t the first time regulators have investigated Robinhood. The stock and crypto exchange has been investigated several times since 2020 over a variety of matters. Among them are anti-money laundering, cybersecurity, account takeovers, and other matters.
HOOD Stock: Robinhood Was Hit With a Fine Earlier This Week
Today’s news comes as Robinhood has already been through a rough week. That includes its crypto division getting hit with a $30 million fine over inadequate cybersecurity measures. It also cut 23% of staff in a mixed earnings report for the second quarter of the year.
Despite news of the SEC probe, HOOD stock isn’t doing bad today. Shares are up 2.8% as of Thursday afternoon as some 16 million units change hands. The company’s daily average trading volume is just above that at 18.6 million shares.
Investors looking for more recent stock market news will want to stick around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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