This 1 Rule Change Could Crush Robinhood's Business
We're only three years removed from the start of the COVID-19 pandemic, but given the sequence of events, it feels like a lifetime ago. That's even more the case for investors who own shares in Robinhood Markets (NASDAQ: HOOD), the brokerage platform getting so much Generation Z attention.
The world looks very different now -- social restrictions have greatly eased and U.S. government stimulus is nearly all gone. Elsewhere, the enthusiasm for Robinhood stock has evaporated along with the enthusiasm for the stock market among young people.
To make matters worse for the online trading platform, the Securities and Exchange Commission (SEC) just proposed a major change to the rules surrounding payment for order flow (PFOF), a stock trading practice that helps Robinhood generates most of its revenue. Here's how the company might be affected.
Source Fool.com
