"20-Year-Old Robinhood Customer Commits Suicide After Seeing -$730,000 Balance"

[SHDL]

BTW, I would disallow trading options @ Robinhood. Or make them restricted to whatever large accounts.

 

I suspect that is coming soon. And if it does, I think that it will be, shall we say, disruptive. Imagine all those call options being sold to close or expiring and dealers unwinding their hedging positions all at once... I don’t think the market has the depth to absorb that kind of selling at current prices.

[KJP]

In the United States legal gambling is not only lawful but rampant, whether its live at the craps table or Sundays on FanDuel.  Many state governments are also into gambling up to their necks via lotteries and tax revenue from legalized gambling.  For example, New York State alone had $10 billion in lottery sales last year.  (Source:  https://www.statista.com/statistics/388238/sales-of-lotteries-by-state-us/) 

 

Despite the known issues with people who are addicted to gambling, the United States not only permits this activity but actively promotes it.  Why would we focus on shutting down something like Robinhood before shutting down casinos, lotteries, and FanDuel? 

 

More broadly, I am skeptical of the argument that people buying options or shorting on Robinhood don't understand the general point that they're engaged in risky activity.  Likewise, we expect recent high school graduates who join the Army to obey the laws of war despite extreme conditions.  We expect police in their early 20's to exercise restraint and good judgment at all times, even under duress, under penalty of jail if they don't meet that standard.  Why do we not expect a 20 year old to be responsible for his or her own voluntary investment/gambling decisions?

 

That last sentence sounds quite heartless in light of this suicide, which is indisputably a terrible tragedy.  But, in my view, the people who are focused on the underlying effort at suicide prevention, rather than rushing to blame Robinhood, are on the right track. 

[Jurgis]

Likewise, we expect recent high school graduates who join the Army to obey the laws of war despite extreme conditions.  We expect police in their early 20's to exercise restraint and good judgment at all times, even under duress, under penalty of jail if they don't meet that standard.

 

OT? I am afraid that our expectations in both of these cases are too high. In fact, I am afraid that our expectations of human behavior in general are too high. Whether applied to young people in their 20s, or people in general, or "highly rational" investment professionals frequenting certain investment forums, or even people at the highest levels of business or politics.

 

Yeah, that makes me a misanthrope.  :-\

 

Also see my signature.

[KJP]

Likewise, we expect recent high school graduates who join the Army to obey the laws of war despite extreme conditions.  We expect police in their early 20's to exercise restraint and good judgment at all times, even under duress, under penalty of jail if they don't meet that standard.

 

OT? I am afraid that our expectations in both of these cases are too high. In fact, I am afraid that our expectations of human behavior in general are too high. Whether applied to young people in their 20s, or people in general, or "highly rational" investment professionals frequenting certain investment forums, or even people at the highest levels of business or politics.

 

Yeah, that makes me a misanthrope.  :-\

 

You may be right.  In any event, holding that view would at least be consistent with greater regulation in general of many activities. 

[rkbabang]

Likewise, we expect recent high school graduates who join the Army to obey the laws of war despite extreme conditions.  We expect police in their early 20's to exercise restraint and good judgment at all times, even under duress, under penalty of jail if they don't meet that standard.

 

OT? I am afraid that our expectations in both of these cases are too high. In fact, I am afraid that our expectations of human behavior in general are too high. Whether applied to young people in their 20s, or people in general, or "highly rational" investment professionals frequenting certain investment forums, or even people at the highest levels of business or politics.

 

Yeah, that makes me a misanthrope.  :-\

 

That is why caveat emptor should be the only law for adults.  This was an adult who made his own decisions (and misunderstandings) and chose to not ask anyone for help.    Unrestricted gambling and drugs should be available for adults as well, both online and off.  It isn't a brokerage's responsibility to baby sit its clients.  Or at least, it shouldn't be.

 

[Castanza]

In the United States legal gambling is not only lawful but rampant, whether its live at the craps table or Sundays on FanDuel.  Many state governments are also into gambling up to their necks via lotteries and tax revenue from legalized gambling.  For example, New York State alone had $10 billion in lottery sales last year.  (Source:  https://www.statista.com/statistics/388238/sales-of-lotteries-by-state-us/) 

 

Despite the known issues with people who are addicted to gambling, the United States not only permits this activity but actively promotes it.  Why would we focus on shutting down something like Robinhood before shutting down casinos, lotteries, and FanDuel? 

 

More broadly, I am skeptical of the argument that people buying options or shorting on Robinhood don't understand the general point that they're engaged in risky activity.  Likewise, we expect recent high school graduates who join the Army to obey the laws of war despite extreme conditions.  We expect police in their early 20's to exercise restraint and good judgment at all times, even under duress, under penalty of jail if they don't meet that standard.  Why do we not expect a 20 year old to be responsible for his or her own voluntary investment/gambling decisions?

 

That last sentence sounds quite heartless in light of this suicide, which is indisputably a terrible tragedy.  But, in my view, the people who are focused on the underlying effort at suicide prevention, rather than rushing to blame Robinhood, are on the right track.

 

Speaking the truth is not heartless. In fact it’s the most caring thing you can do. Society needs more of this and less coddling. I was about to post something very similar until I saw this. Is it sad? Absolutely. Should Robinhood reevaluate their approach and how they display information and educate investors? Absolutely.

 

At the end of the day let’s let adults be adults and reap what they sow.

[SharperDingaan]

This is 2020. If you build and design an atomic bomb, you are also responsible for the radiation that it causes. If you produce dirty oil, you are also responsible for the climate damage in its production and use. We can no longer claim that we just make the tools (booze, guns, cigarettes, sugar, plastics, etc) - and are not responsible for how they are used.

 

It's called Corporate Social Responsibility (reputation), and it particularly applies to network business models (disruptive social media, disruptive block chain, etc). Robin Hood is just one more example, in today's wild west.

 

Robin Hood BK's tomorrow, few will care.

But the more of this sh1te that accumulates, the more disruptive it becomes, and the less able the economy is to deal with it (Great Depression), the quicker we get to tippling point - and widespread change. In the US, it produced the Securities Act of 1933, and the Glass Steagall Act of 1933.

 

Enjoy the party while it lasts folks, 'cause it's coming to an end.

And maybe a lot sooner than many had hoped.

 

SD

 

 

 

 

 

 

 

 

 

 

 

 

[rb]

Likewise, we expect recent high school graduates who join the Army to obey the laws of war despite extreme conditions.  We expect police in their early 20's to exercise restraint and good judgment at all times, even under duress, under penalty of jail if they don't meet that standard.

 

OT? I am afraid that our expectations in both of these cases are too high. In fact, I am afraid that our expectations of human behavior in general are too high. Whether applied to young people in their 20s, or people in general, or "highly rational" investment professionals frequenting certain investment forums, or even people at the highest levels of business or politics.

 

Yeah, that makes me a misanthrope.  :-\

 

That is why caveat emptor should be the only law for adults.  This was an adult who made his own decisions (and misunderstandings) and chose to not ask anyone for help.    Unrestricted gambling and drugs should be available for adults as well, both online and off.  It isn't a brokerage's responsibility to baby sit its clients.  Or at least, it shouldn't be.

KJP I think you are a lawyer right?

 

Your argument doesn't make that much sense to me. Yes there are casinos and there is gambling. But Robinhood is not a casino, it is a brokerage. Gambling on stocks (while legal in the UK) is not legal in the US. Should Robinhood choose to convert to a casino, sure they can go and lay out the craps tables. But while they are a brokerage shouldn't they have to obey the laws and regulations governing brokerages?

 

RK, maybe caveat emptor should be the only law. But it isn't. Companies should respect the laws that are, not the laws that they wish they were. Wouldn't you agree? Now even should drugs were legal wouldn't you want the company that markets heroin to have a sign on the package that says this product is known to be harmful and overuse may cause death. Or do you want the heroin companies to run campaigns to "do as much heroin as you possibly can", sell discount heroin to teens cause that's the best time to "get them" etc?

[Castanza]

Likewise, we expect recent high school graduates who join the Army to obey the laws of war despite extreme conditions.  We expect police in their early 20's to exercise restraint and good judgment at all times, even under duress, under penalty of jail if they don't meet that standard.

 

OT? I am afraid that our expectations in both of these cases are too high. In fact, I am afraid that our expectations of human behavior in general are too high. Whether applied to young people in their 20s, or people in general, or "highly rational" investment professionals frequenting certain investment forums, or even people at the highest levels of business or politics.

 

Yeah, that makes me a misanthrope.  :-\

 

Also see my signature.

 

This is nonsense....I’ve seen children (first hand) in third world countries have more responsibility and act more “adult like” than your average millennial. Notice the more laws we create to coddle individuals, the softer society becomes and the more coddling it needs. If you have low expectations of society and individuals (and let them know it), you’re pretty much guaranteed to get poor results.

 

I’m a firm believer in the saying “Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times.” If I had to pick a point as to where modern society is, I would say somewhere in the bottom of the “good” inning.

[Spekulatius]

Likewise, we expect recent high school graduates who join the Army to obey the laws of war despite extreme conditions.  We expect police in their early 20's to exercise restraint and good judgment at all times, even under duress, under penalty of jail if they don't meet that standard.

 

OT? I am afraid that our expectations in both of these cases are too high. In fact, I am afraid that our expectations of human behavior in general are too high. Whether applied to young people in their 20s, or people in general, or "highly rational" investment professionals frequenting certain investment forums, or even people at the highest levels of business or politics.

 

Yeah, that makes me a misanthrope.  :-\

 

Also see my signature.

 

This is nonsense....I’ve seen children (first hand) in third world countries have more responsibility and act more “adult like” than your average millennial. Notice the more laws we create to coddle individuals, the softer society becomes and the more coddling it needs. If you have low expectations of society and individuals (and let them know it), you’re pretty much guaranteed to get poor results.

 

I’m a firm believer in the saying “Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times.” If I had to pick a point as to where modern society is, I would say somewhere in the bottom of the “good” inning.

 

And when this doesn’t work, something evolution does the work.

 

I a, not quite sure what to think of this. Is it Robinhood’s fault, or the parents or the individual himself. Is there anything that could not have happened if he had opened the account with Schwab or Fidelity or Interactive brokers?

 

Anecdotally, my 14 year old son has friend from high school and one of them is in the “silver trade”. I am not sure what this teenagager is trading and perhaps it is harmless, but it seems to me that the parents should probably look at this closely. My son got interested too, so I let him open a virtual trading account at Investopedia. So far, his trades have been losses as far as I can tell.

 

FWIW, I bought my first stock when I was 16.

[KJP]

Likewise, we expect recent high school graduates who join the Army to obey the laws of war despite extreme conditions.  We expect police in their early 20's to exercise restraint and good judgment at all times, even under duress, under penalty of jail if they don't meet that standard.

 

OT? I am afraid that our expectations in both of these cases are too high. In fact, I am afraid that our expectations of human behavior in general are too high. Whether applied to young people in their 20s, or people in general, or "highly rational" investment professionals frequenting certain investment forums, or even people at the highest levels of business or politics.

 

Yeah, that makes me a misanthrope.  :-\

 

That is why caveat emptor should be the only law for adults.  This was an adult who made his own decisions (and misunderstandings) and chose to not ask anyone for help.    Unrestricted gambling and drugs should be available for adults as well, both online and off.  It isn't a brokerage's responsibility to baby sit its clients.  Or at least, it shouldn't be.

KJP I think you are a lawyer right?

 

Your argument doesn't make that much sense to me. Yes there are casinos and there is gambling. But Robinhood is not a casino, it is a brokerage. Gambling on stocks (while legal in the UK) is not legal in the US. Should Robinhood choose to convert to a casino, sure they can go and lay out the craps tables. But while they are a brokerage shouldn't they have to obey the laws and regulations governing brokerages?

 

 

I don't know all of the facts of this particular case.  My comment was directed to self-directed transactions, not transactions driven by recommendations subject to suitability obligations, e.g., FINRA Rule 2111 or the new Best Interest Regulation.  What laws and regulations do you believe Robinhood is violating (there may be many, but I'm trying to clarify exactly what you're referring to)? 

 

Alternatively, we don't have to get bogged down in the weeds of broker-dealer regulation, because I agree with you that a broker-dealer should follow the law as it stands and can, in certain circumstances, be liable if it doesn't.  My comment was more directed to what I understood to be the thrust of several commenters on this thread who were discussing what the law should be and  and, in particular, what we should permit individual investors to do, rather than directed to your comments, which as you note were directed at compliance with the law as you currently believe it to be, rather than an opinion about what the law should be.

 

 

[LC]

Real life does not have black and white solutions.

 

My guess is that many here agree with the following two statements:

 

It isn't a brokerage's responsibility to baby sit its clients.  Or at least, it shouldn't be.

 

We can no longer claim that we just make the tools (booze, guns, cigarettes, sugar, plastics, etc) - and are not responsible for how they are used.

[meiroy]

 

 

 

Disclaimer: I know nothing about this tragic event and this individual, just based on life experience: 

 

It's worth mentioning that depression is a real disease and people with this disease are more likely to take their own lives.

 

If you know anyone who might be suffering from depression, try and make sure they receive treatment.

 

This is especially true in these unique times when stress or any stressful event might push someone over the edge.

 

 

[merkhet]

I have dealt with late teen suicides, thankfully none in my family, but always a tragedy.  as best I can tell, many of these kids come to what they believe is a "no way out" position, they have done something that turns out bad and they develop huge shame and guilt, and feel they cant talk to no one, and even worse, they cant talk to the people they would normally be able to talk to (parents), and so they do an act that cannot be retrieved.  I am not discussing teens with drugs addictions or mental health issues, they are a whole other problem, but I am talking about the healthy lovable and sometimes frustrating teen in your house.  I have come to believe that you need to "premortem" teenagers, tell them in advance that NOTHING is not redeemable, that there is no no way out position or end point.  the kids will look you in the eye and wonder what is wrong with you, but just tell them this nonetheless and that you love them

 

+1

 

My wife and I are expecting our first child in October, so this story hit me pretty hard. We spent a good bit of this week discussing how we might make sure to impart to our child that there is always a way out. I can't imagine what those parents are going through.

[rkbabang]

Real life does not have black and white solutions.

 

My guess is that many here agree with the following two statements:

 

It isn't a brokerage's responsibility to baby sit its clients.  Or at least, it shouldn't be.

 

We can no longer claim that we just make the tools (booze, guns, cigarettes, sugar, plastics, etc) - and are not responsible for how they are used.

 

 

Real life isn't black and white, but law should be.  (notice I didn't say "law is", because it is a mess, but that keeps politicians and lawyers busy).  Adults should be responsible for their choices and actions.  Period.  rb said above that investing shouldn't be gambling, but the only way to tell the difference is for a brokerage to read its clients minds.  Any restrictions will go too far and limit the ability of some people who are not gambling to make the trades they wish to make.

[Guest cherzeca]

I have dealt with late teen suicides, thankfully none in my family, but always a tragedy.  as best I can tell, many of these kids come to what they believe is a "no way out" position, they have done something that turns out bad and they develop huge shame and guilt, and feel they cant talk to no one, and even worse, they cant talk to the people they would normally be able to talk to (parents), and so they do an act that cannot be retrieved.  I am not discussing teens with drugs addictions or mental health issues, they are a whole other problem, but I am talking about the healthy lovable and sometimes frustrating teen in your house.  I have come to believe that you need to "premortem" teenagers, tell them in advance that NOTHING is not redeemable, that there is no no way out position or end point.  the kids will look you in the eye and wonder what is wrong with you, but just tell them this nonetheless and that you love them

 

+1

 

My wife and I are expecting our first child in October, so this story hit me pretty hard. We spent a good bit of this week discussing how we might make sure to impart to our child that there is always a way out. I can't imagine what those parents are going through.

 

while depression is a major issue among many, I have come to believe that finding yourself in a "no way out" position, so you believe at the moment, is a piece of geography that every teen will traverse at some point, even for an instant.  there is so much pressure placed on teens these days, even by well-intentioned parents, and a "I've fucked up, what do I do know" mindset is just a bad situation that the kid has to fight through on his/her own (since as I repeat, it is the rare kid who will confide in parents as a first option).  as I have been writing these posts, and I have burdened you with them since I have not spent that much time on this topic recently as I used to get involved with my son's peer group, who is now 29 years old, I have come to think the best way of "premorteming" is to tell a story about yourself, and make it up if you have to (the best stories are at least partially made up), and how you learned that there is always a way out.

[rkbabang]

I have dealt with late teen suicides, thankfully none in my family, but always a tragedy.  as best I can tell, many of these kids come to what they believe is a "no way out" position, they have done something that turns out bad and they develop huge shame and guilt, and feel they cant talk to no one, and even worse, they cant talk to the people they would normally be able to talk to (parents), and so they do an act that cannot be retrieved.  I am not discussing teens with drugs addictions or mental health issues, they are a whole other problem, but I am talking about the healthy lovable and sometimes frustrating teen in your house.  I have come to believe that you need to "premortem" teenagers, tell them in advance that NOTHING is not redeemable, that there is no no way out position or end point.  the kids will look you in the eye and wonder what is wrong with you, but just tell them this nonetheless and that you love them

 

+1

 

My wife and I are expecting our first child in October, so this story hit me pretty hard. We spent a good bit of this week discussing how we might make sure to impart to our child that there is always a way out. I can't imagine what those parents are going through.

 

while depression is a major issue among many, I have come to believe that finding yourself in a "no way out" position, so you believe at the moment, is a piece of geography that every teen will traverse at some point, even for an instant.  there is so much pressure placed on teens these days, even by well-intentioned parents, and a "I've fucked up, what do I do know" mindset is just a bad situation that the kid has to fight through on his/her own (since as I repeat, it is the rare kid who will confide in parents as a first option).  as I have been writing these posts, and I have burdened you with them since I have not spent that much time on this topic recently as I used to get involved with my son's peer group, who is now 29 years old, I have come to think the best way of "premorteming" is to tell a story about yourself, and make it up if you have to (the best stories are at least partially made up), and how you learned that there is always a way out.

 

The best stories actually happened to other people.  I'd use stories like this one to tell my kids this type of thing.  Another good thing to tell your kids, which is something I told my kids and my parents told me.  Is that while you should always try to learn from your own mistakes, it is always better to learn from the mistakes of others, because you don't always live long enough to learn from your own.

 

[merkhet]

Thanks cherzeca & rkbabang. Will log this in the parental files for the future.

[vinod1]

cherzeca - Fantastic advice to all parents. Noted down all your comments. Thank you!

 

rkbabang & SharperDingaan - Great advice! Thank you!

 

It is always surprising to me how much good non-investing advice there is on this forum from fellow board members.

 

Vinod

 

[vinod1]

Likewise, we expect recent high school graduates who join the Army to obey the laws of war despite extreme conditions.  We expect police in their early 20's to exercise restraint and good judgment at all times, even under duress, under penalty of jail if they don't meet that standard.

 

OT? I am afraid that our expectations in both of these cases are too high. In fact, I am afraid that our expectations of human behavior in general are too high. Whether applied to young people in their 20s, or people in general, or "highly rational" investment professionals frequenting certain investment forums, or even people at the highest levels of business or politics.

 

Yeah, that makes me a misanthrope.  :-\

 

Also see my signature.

 

This is nonsense....I’ve seen children (first hand) in third world countries have more responsibility and act more “adult like” than your average millennial. Notice the more laws we create to coddle individuals, the softer society becomes and the more coddling it needs. If you have low expectations of society and individuals (and let them know it), you’re pretty much guaranteed to get poor results.

 

I’m a firm believer in the saying “Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times.” If I had to pick a point as to where modern society is, I would say somewhere in the bottom of the “good” inning.

 

Do not mean to argue with you. It is something, if I remember correctly, Billy Bryson wrote about. He talks about how while he was talking with a parent from some tribe that has not yet been introduced to modern world,  the 2 or 3 year old child keeps playing with a very sharp knife and every time the kids drops the knife, the parent keeps handing it back to the child. I am sure by the time the kid grows up to 7 or 8 he becomes an expert at it. But there is a downside to it.

 

Do you know how many children in those countries do not have arms, legs, one or both eyes damaged? Yes it teaches responsibility but you need to be willing to live with the pain, which means you need to be able to say I am fine if my child loses an arm or a leg or his eye. In a rich developed country, your tolerance for that would be low.

 

I grew up in India, so I am well aware of what you are saying. Just pointing what you need to be willing to give up as well.

 

Vinod

[vinod1]

I agree with educating children on finances. But would even go further. Just like you have a driving test before you drive, have a test with basic information about stocks, biases, etc. and only if they pass they should be able to open a trading account for stocks and options. Else they would only be limited to broad index or active funds.

 

Vinod

[Gregmal]

I agree with educating children on finances. But would even go further. Just like you have a driving test before you drive, have a test with basic information about stocks, biases, etc. and only if they pass they should be able to open a trading account for stocks and options. Else they would only be limited to broad index or active funds.

 

Vinod

 

This is an excellent idea. While maybe annoying, is there any reason at all it doesnt make sense to mandate an individual with limited investing experience take a brief online tutorial/course prior to being permitted to open a trading account? Doesnt even have to be pass/fail, just a basic intro of "hey this is what you're getting in to".

[KJP]

I agree with educating children on finances. But would even go further. Just like you have a driving test before you drive, have a test with basic information about stocks, biases, etc. and only if they pass they should be able to open a trading account for stocks and options. Else they would only be limited to broad index or active funds.

 

Vinod

 

This is an excellent idea. While maybe annoying, is there any reason at all it doesnt make sense to mandate an individual with limited investing experience take a brief online tutorial/course prior to being permitted to open a trading account? Doesnt even have to be pass/fail, just a basic intro of "hey this is what you're getting in to".

 

I think the best argument against it is empirical rather than philosophical -- it wouldn't actually do anything to change people's behavior, but it would allow those who wish to do so to say that appropriate steps were taken and "You were warned.  It's on you."  In short, it seems to be a symbolic act, rather than a real effort to solve a problem.

 

That being said, my objection could be tested by some type of randomized trial to see if the proposal has any effects.  If it actually does change outcomes in a good way, then I see no reason not to do it. 

[vinod1]

I agree with educating children on finances. But would even go further. Just like you have a driving test before you drive, have a test with basic information about stocks, biases, etc. and only if they pass they should be able to open a trading account for stocks and options. Else they would only be limited to broad index or active funds.

 

Vinod

 

This is an excellent idea. While maybe annoying, is there any reason at all it doesnt make sense to mandate an individual with limited investing experience take a brief online tutorial/course prior to being permitted to open a trading account? Doesnt even have to be pass/fail, just a basic intro of "hey this is what you're getting in to".

 

I think the best argument against it is empirical rather than philosophical -- it wouldn't actually do anything to change people's behavior, but it would allow those who wish to do so to say that appropriate steps were taken and "You were warned.  It's on you."  In short, it seems to be a symbolic act, rather than a real effort to solve a problem.

 

That being said, my objection could be tested by some type of randomized trial to see if the proposal has any effects.  If it actually does change outcomes in a good way, then I see no reason not to do it.

 

You might be right.

 

My thought process is to view it as similar to driving. You can just say people drive the way they want to drive and that self interest should ensure that they would try to minimize accidents. So there is no need for a driving test.

 

I think that making people aware of basic signs, yield, right of way, double yellow line, etc. they become more likely to follow rules than if they have never even been made to go through that written and a driving test.

 

I would think that something similar is likely. Just like we do not eliminate drunk driving or reckless driving completely, we could reduce it.

 

In 1999 I bought two stocks about $1000 each. I think after reading an article on each. :) They went to $6800 before going to nearly zero. I had no idea if I lost money because stock market is a giant gambling machine and I just got the wrong cards, or if there is some approach that I am supposed to follow and did not know about it or something else.

 

That curiosity led me down the path of my interest in investing. Went through all the books of the investing section of the local library twice over the next couple of years.

 

Assuming I am not a complete idiot (may not be a safe assumption), many people new to investing might be similar to me and do not really know much about the stock market. By making them aware of very simple investing knowledge they would be less inclined to do what I did.

 

We are not going to avoid it completely but I would think it would diminish some of errors people make. Just by putting this kind of gate, we can reduce the number of people who get into trouble with single stocks and options.

 

Imagine you set this kind of test at some threshold that requires some basic numerical literacy and understanding of financial concepts, I think that might say not allow some x% who do not meet that standard from being able to even get into trouble as they would be unable to open an account for individual stocks or options.

 

Of course, the remaining 100% - x%, might feel like geniuses for passing the test and trade even more recklessly :) so you might end up being right.

 

Vinod

[randomep]

 

Folks, a lot of you are saying Robinhood is should not have given an inexperienced 20yr old an account to trade options. But that isn't the crux of this incident.  The young guy commited suicide because of a misleading financial statement.  He should have been taught to understand that the liabilities of the account do not go beyond the assets in the accounts, that his parents are not liable, etc..... so just make them take a test on understanding a statement or ..... maybe do a better job of describing a person's assets and liabilities.

 

As someone mentioned, my broker can show that I have zero assets in a large account because they show all my holdings have a zero value, presumably because they are foreign.