A new app put powerful trading tools in the hands of individuals stuck at home, Boston College finance professor reports
New financial technologies that put powerful trading tools in the hands of individual investors may have moved Main Street a little closer to Wall Street during the COVID-19 lockdown period—and boosted the stock market in the process—according to a new study by Carroll School of Management Haub Family Professor of Finance Ronnie Sadka.
During the lockdown period, roughly from late March to early May, investors flocked to the trading app Robinhood and delivered a much-needed infusion of cash, according to Sadka and co-authors Gideon Ozik, of France’s EDHEC Business School, and Siyi Shen, of The Chinese University of Hong Kong, Shenzhen-School of Management and Economics.