Understanding Reward Stock on Robinhood
Reward stock is a type of free stock that you can receive on Robinhood through various promotions, such as referring friends or participating in certain activities. These shares are typically fractional shares of publicly traded companies.
Selling Reward Stock on Robinhood
You can sell your reward stock on Robinhood 3 trading days after you claim it. This means that once you receive the shares in your account, you must wait 3 full trading days before you can sell them.
Trading days are weekdays when the stock market is open Weekends and holidays are not considered trading days
Here’s an example:
- You claim your reward stock on Monday.
- You can sell your reward stock on Thursday, which is 3 trading days after Monday.
Note:
- You can check the purchase value of your reward stock in your account History.
- You can only sell the reward stock after you have claimed it.
- Once you sell your reward stock, you can use the proceeds to invest in other stocks, ETFs, or options.
How to Sell Reward Stock on Robinhood
To sell your reward stock on Robinhood, follow these steps:
- Go to the stock’s detail page. You can find this by searching for the stock symbol in the search bar.
- Select “Trade” and then “Sell.”
- Choose whether you want to sell your shares by dollar amount or by number of shares.
- Enter the amount you want to sell.
- Review your order and confirm that all the details are correct.
- Swipe up to submit your order.
Additional Information:
- During regular market hours, dollar-based and share-based sell orders are market orders. This means that your order will be executed at the best available price in the market at that time.
- During extended hours, dollar-based and share-based sell orders are limit orders with a preset limit price. This means that your order will only be executed if the stock price reaches your specified limit price.
- Outside regular market hours and extended hours, dollar-based and share-based sell orders are queued for the opening of regular market hours.
Frequently Asked Questions
Q: Can I sell my reward stock immediately after claiming it?
A: No, you must wait 3 trading days after claiming your reward stock before you can sell it.
Q: What happens if I sell my reward stock before the 3 trading day waiting period?
A: If you try to sell your reward stock before the 3 trading day waiting period, your order will be rejected.
Q: Can I sell only a portion of my reward stock?
A: Yes, you can sell any amount of your reward stock, as long as it is at least one share.
Q: What happens to the proceeds from selling my reward stock?
A: The proceeds from selling your reward stock will be deposited into your Robinhood account balance. You can then use this money to invest in other stocks, ETFs, or options.
Q: Are there any fees associated with selling reward stock?
A: No, there are no fees associated with selling reward stock on Robinhood.
Q: Can I sell my reward stock on the weekend?
A: No, you can only sell your reward stock during regular market hours or extended hours. The stock market is closed on weekends and holidays.
Q: What if I forget to sell my reward stock within 3 trading days?
A: If you forget to sell your reward stock within 3 trading days, you will still be able to sell it later. However, the stock price may have changed since you claimed it.
Selling reward stock on Robinhood is a simple process that only takes a few minutes. However, it’s important to remember that you must wait 3 trading days after claiming your reward stock before you can sell it.
Robinhood U. K. Ltd. (Robinhood UK) is subject to Financial Conduct Authority regulation and authorization (FRN: 823590). When it comes to their usage of the Robinhood UK app and website, UK customers are onboarded by Robinhood UK, which also maintains the primary customer relationship with them. For order routing, execution, clearing, settlement, setting up custody services, and margin lending to qualified UK customers with margin accounts, Robinhood UK introduces them to Robinhood Securities, LLC. Robinhood Securities, LLC is regulated in the U. S. by the SEC and FINRA. Robinhood Markets, Inc.’s subsidiaries include Robinhood UK and Robinhood Securities, LLC.
For qualified EU clients, cryptocurrency services are provided via an account with Robinhood Europe, UAB (business number 306377915), whose registered address is Mėsinių 5, LT-01133 Vilnius, Lithuania (“RHEC”). RHEC is registered as a virtual currency exchange and virtual currency depository wallet operator in accordance with the Republic of Lithuania’s regulatory requirements. Under the Republic of Lithuania’s Ministry of the Interior, the Lithuanian Financial Crime Investigation Service is in charge of overseeing RHEC. In accordance with the relevant Polish legislation, RHEC is listed as a virtual assets service provider (VASP) in the Tax Administration Chamber’s Director’s Register of Virtual Currency Activities.