Yahoo Finance’s Brian Sozzi spoke with Ark Invests founder, CEO and CIO Cathie Wood of Robin Hood and about payment for order flow.
Widely followed investor Cathie Wood remains the owner of Robinhood (HOOD) even as the threat of a crackdown on order flow payments by regulators looms as a key risk.
Ark Invest’s founder, CEO and CIO said in an exclusive interview on Yahoo Finance Live that Robinhood is currently a 1% stake for his company.
Wood sent Robinhood’s stock market into a tailspin in early August after revealing purchases of the trading platform’s shares after a disappointing IPO in late July. The shares quickly skyrocketed to an intraday high of $ 85 on August 4, according to data from Yahoo Finance Plus, as traders who delivered every call from Wood’s firm embraced the buy.
“We are looking into the payment for the order flow dispute. We know that president [Gary] Gensler at the SEC is watching this. This is a large percentage of Robinhood’s revenue. But we actually think it won’t change much because the system has been very good from an execution standpoint for the ultimate investor. So we would be surprised to see many changes on this front. But again, we’re in a situation where we have to listen to what the SEC says, ”Wood told Yahoo Finance Live.
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