Robinhood (NASDAQ:HOOD) stock is in the spotlight today as investors react to news of a probe from the U.S. Securities and Exchange Commission (SEC).
Robinhood revealed the probe in a filing with the SEC. The filing shows that the agency’s Division of Enforcement initiated a probe into the company back in October 2021. In the second quarter of 2022, the agency requested additional information for the investigation.
According to Robinhood, the company is complying with this investigation. HOOD notes that the SEC probe has to do with “Regulation SHO,” which covers short selling. Also included in the probe are other “securities lending and fractional share trading” questions.
It’s worth pointing out that this isn’t the first time regulators have investigated Robinhood. HOOD stock and the Robinhood crypto exchange have been investigated several times since 2020 over a variety of matters. Among them are anti-money laundering, cybersecurity, account takeovers and other matters.
HOOD Stock: Robinhood Hit With Fine Earlier This Week
Today’s news comes after an already rough week for the company. That includes its crypto division getting hit with a $30 million fine over inadequate cybersecurity measures. Robinhood also cut 23% of staff amid a mixed Q2 earnings report.
Despite news of the SEC probe, though, HOOD stock isn’t doing bad today. Shares are up 3% as of Thursday afternoon as some 16 million units change hands. The company’s daily average trading volume is just above that at 18.6 million shares.
Investors looking for more recent stock market news will want to stick around!
We’ve got all the hottest stock news traders need to know about for Thursday! Among that is what has shares of Lucid (NASDAQ:LCID), electric vehicle (EV) stocks and Nikola (NASDAQ:NKLA) stock on the move. You can find out more at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.