If you didn't know, Robinhood is offering new customers a free stock for any application that gets approved. The mystery stock valuation may be priced anywhere between a $3 to $150 stock. Who knows? You may receive a free Facebook or Apple stock just for signing up.
Robinhood is a commission-free investing mobile application that has grown tremendously in the past couple of years, redefining consumer investing. Robinhood cuts out the middleman fees from traditional stock brokers so you are given the ability to freely trade stocks on a whim. Robinhood has even moved into cryptocurrency and launched their own functional web platform for stock trading. Simply put, Robinhood makes investing simple, quick, and easy.
Robinhood investments are FDIC approved, meaning that you will receive the same level of protection from a traditional financial institution. The only difference is that you don't have to pay a fee upon any event of stocks changing hands. There are many benefits to owning a Robinhood account. However, for the purposes of this post, I will be focusing on Robinhood's free stock giveaway for newly approved customers.
Frequently Asked Questions
1. How does Robinhood choose which stock my friend and I get?
When your friend’s application is approved, the shares of free stock are chosen randomly from our inventory of settled shares. Because we choose randomly, you and your friend may not receive the same stock. The value of the share may be anywhere between $3 and $150, and fluctuates based on market movements. We choose companies and purchase stocks every day into the inventory based on their total value (market capitalization) and the price of each share.
2. I got a notification saying my free stock is ready. How do I claim my reward?
Once your free stock is ready we will send you a notification to claim your reward. If you forget to tap on the notification, you can always claim your reward by navigating to the history screen or the past invites screen. If you don’t claim the reward for 60 days, your reward will expire.
3. Do I have to hold the stock in my account for a certain amount of time?
You are allowed to sell the free share of stock two days after you receive it. It’s completely up to you whether you keep or sell the stock. You can use the proceeds from the sale towards other stocks that you want to invest in.
4. When can I take the money out of Robinhood?
You have to keep the cash value of the stock in your account for at least 30 days before withdrawing it. After the 30-day window, there are no restrictions on the money.
If we add 1 share worth $10 to your account, you cannot withdraw the $10 you receive by selling the stock for 30 days.
If we add 1 share worth $10 to your account and you deposit $100 dollars into your account, you can only withdraw $90 until you sell the stock bonus. After you sell the share, you will be able to withdraw an additional $10.