Article: Trading hot stocks like GameStop seems fun until you look beneath the surface

Article - Media

Trading hot stocks like GameStop seems fun until you look beneath the surface

Congress is asking questions about whether middlemen or “market makers” like Citadel that execute stock trades really give small investors the best prices.

Gretchen Morgenson, ABCNews, 18 February 2021

Market makers like Citadel make money by pocketing the difference between the price at which they buy shares — the bid — and the price they receive from selling them to Robinhood clients, the offer. Other firms in the business are Virtu Americas, G1X Execution Services and Two Sigma Securities.

Read full article.