Robinhood Gets Good News From the SEC. Why the Stock Is Jumping.

Robinhood shares were rising ahead of the bell Wednesday after the Securities and Exchange Commission approved some important changes for the cryptocurrency exchange. Robinhood gained 7.9% in premarket trading—having climbed over 10% the previous session—following the SEC’s Tuesday announcement to extend retail investors’ ability to use borrowed money to invest. Under the old rules, margin account holders who made four or more day-trades within five business days had to keep at least $25,000 in their accounts, effectively shutting out smaller traders.