Rep. Alexandria Ocasio-Cortez (AOC) has won another titan to her side in her fight against Robinhood. Tech mogul Elon Musk has expressed his support to AOC, tweeting his affirmation on the call of NYC's 14th District Representative to hold a hearing on the app.
Elon Musk, CEO and Product Architect of Tesla, has joined public figures in supporting AOC's call for a House Financial Services Committee hearing against Robinhood, a stock trading app, which decided to halt trading the GameStop stock, Business Insider reported.
Ocasio-Cortez retweeted a news article from Motherboard, which stated that more than half of Robinhood users own at least a number of GameStop stock and they are now unable to freely trade it because the app is just allowing the users to close out their positions.
In the caption, Ocasio-Cortez said that it was unacceptable. Hence, it wanted to know more about the decision of the app Robinhood, which blocks retail investors from purchasing stock, and yet, hedge funds freely trade the stock as they see fit.
AOC ended her tweet with a call for a hearing on the app by the Financial Services Committee.
Replying to the tweet, the world's richest man categorically stated, "Absolutely."
FoxNews reported that Robinhood is a financial services company that was founded by Vladimir Tenev and Baiju Bhatt in 2013. It offers commission-free trading on options, individual companies, and Exchange Traded Funds (ETFs).
Users can download the app through Android and iOS. Once downloaded, they can then create an account where they would be required to enter their Social Security number and connect a bank account.
Using the app, a user can search for stocks, see their prices, as well as the stock activity. They can search as far as five years back to help them see how the stock performed. Users can also check out news stories and analyst ratings on stocks that they want to invest in or on companies that they are considering.
The app came under fire after it stopped its clients from purchasing shares of a number of companies, whose stock prices rose. The increase in price came after day traders organised on Reddit and subsequently bought shares and options in bulk.
This clearly did not sit well with Ocasio-Cortez, resulting in a call that was supported by many, including Elon Musk.