At Robinhood, we want to help you make informed investing decisions. With this in mind, we’ll let you know about a potentially greater risk when investing in certain securities.

We flag certain securities, such as:

• Complex product flags
• Companies that have filed for bankruptcy
• Stocks that may have experienced recent elevated volatility
• Speculative stocks or foreign-domiciled companies that exhibit higher risk characteristics

Temporary and permanent labels or flags are shown in different ways:

• For assets with temporary alerts, you’ll see an alert message about the potential risk across the top of your screen for the asset, such as for elevated volatility
• For securities with permanent alerts, a yellow, oval-shaped label will show next to the security’s name, such as for bankruptcy

The following labels alert you to securities that may introduce more investment risk, such as complex financial products that are:

• Leveraged
• Inverse
• Volatility-linked
• Leveraged inverse
• Leveraged volatility
• Inverse volatility
• Leveraged inverse volatility

Products with these labels are risky and typically not for buy-and-hold investors. Some advanced traders might hold them for a day, but holding them for longer may increase the risk even further.

These products are also volatile, can cause considerable losses, and may not be suitable for all investors. Learn more about a specific product in its prospectus and more about these products on FINRA’s website and MAS’ guide.

We label companies that are failing to meet the listing standards of Nasdaq or NYSE. You may continue to trade the security that’s noncompliant with the listing standards. However, you need to be aware of the risks and consider monitoring the status change, which could improve.

A few potential reasons for this label include when a company is failing to:

• Meet minimum financial standards
• Maintain a minimum stock price
• Meet corporate governance requirements

To learn more, visit Nasdaq or NYSE, or reach out to the company’s investor relations.

We label companies that have filed for bankruptcy. You may still be able to place a trade for a company that has filed for bankruptcy. While it’s possible for a company to emerge from bankruptcy, shareholders are likely to suffer heavy losses, or to find that their shares become worthless. Read more about what happens to shares in bankruptcy on the SEC's website.

We also label stocks that have experienced recent elevated volatility. Elevated volatility may be a cautionary sign to do more research on the company, such as its performance and expectations, the stock’s 52-week high and low, earnings reports, and any recent announcements.

To determine whether a stock has experienced recent elevated volatility, we compare the stock’s daily return with its daily returns over the last year (252 trading days). If a stock’s most recent daily return is 6 or more standard deviations outside of its historical performance (higher or lower), then it’s flagged with elevated volatility.

We perform the elevated volatility calculation once around the middle of the trading day (comparing the midday price with the last closing price), and once at the end of the trading day (comparing the closing price with the previous closing price). The closing price is the price at which a trade was last executed during a trading session.

These labels are updated 24 hours after their most recent flag.

We flag and label certain speculative securities that exhibit higher risk characteristics, such as low liquidity, extreme price volatility, or heightened promotional activity.

This label also includes certain foreign-domiciled companies, particularly those in specific high-risk jurisdictions, that may be subject to different regulatory and legal standards. These potentially lead to limited transparency and fewer investor protections as compared to US companies.

This label is intended to inform you of the inherent risks associated with trading these assets and to support responsible investing.