10 Firms Suffer Steep Downfall on Monday

2. Robinhood Markets Inc. (NASDAQ:HOOD)

Robinhood fell by 19.79 percent on Monday to end at $35.63 apiece—a third consecutive day—as investors sold off positions to mitigate risks from economic uncertainties, coupled with news that it agreed to settle multiple investigations by the Financial Industry Regulatory Authority (FINRA).

On Friday, FINRA said that HOOD agreed to pay $29.75 million to settle penalties, of which $26 million will be paid as a civic penalty, while the remaining $3.75 million will be used to compensate its customers.

The penalty stemmed from HOOD’s alleged inadequate management of social media influencers promoting the platform and for not addressing alerts about delays in trade processing.

The issue peaked in January 2021 when HOOD was said to have limited transactions in meme stocks like GameStop and AMC Entertainment Holdings due to unusual trading volumes.