However, many investors were probably discouraged from acquiring HOOD shares after the company disclosed on Tuesday that it facing new regulatory investigations.
In its regulatory filing, Robinhood revealed that the Financial Industry Regulatory Authority (FINRA) is investigating the company’s CEO Vlad Tenev and Chief Creative Officer Baiju Bhatt. The regulator is looking into the fact that the company’s co-founders failed to comply with the registration requirements for individuals engaged in the securities business.
Robinhood also disclosed that FINRA, the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and several state regulators are investigating its employees’ trading subject to the Early 2021 Trading Restrictions.
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