U.S. Congresswoman Cindy Axne

Iowa’s Third Congressional Representative Cindy Axne recently questioned the Chief Executive Officer of a stock trading application concerning the way his company presents investments.

She tells Raccoon Valley Radio some of the details on what concerns she had with the company.

“It’s called Robin Hood. Makes you think you’re the little guy beating the big guy, and you get this free stock. It looks like a gambling application. When you click on a stock and decide to purchase something, confetti flies and good for you for doing this, it’s so exciting, that kind of stuff. They push notifications out to individuals to encourage them to buy certain stock. Here’s the issue. Only onepercent of the average day traders, that’s you and me, the normal people, not brokers, beats the stock market.”

Axne adds that Robin Hood encourages people to make multiple trades to generate a profit for Citadel, a company that provided $90 million in trade transactions. She says that people vulnerable to income loss during the pandemic who look to trading as a way to get ahead end up suffering when they’re in the 99 percent who lose money in the stock market.