How many free stocks can I get?
You can win up to $500 in free stocks. You can check the price of each stock you get on the history page for the free stock.
Can I sell my free share of stock?
You are allowed to sell the free share of stock two trading days after you receive it. It’s completely up to you whether you hold or sell the stock. You can use the proceeds from the sale towards other stocks that you want to invest in.
When can I take the money out of Robinhood?
You have to keep the cash value of the stock in your account for at least 30 days before withdrawing it. After the 30-day window, there are no restrictions on the proceeds. For example, if you win 1 share worth $10 to your account, you cannot withdraw the $10 you receive by selling the stock for 30 days.
The cash value of the stock is determined by the price of the stock at the time you received it. You can check this value on the history page for the free stock.
How are my free shares of stock taxed?
The cash value of the free stock at the time you received it may be reported as “Other Income” on a 1099-Misc form. Any gains or losses on the sale of the stock are reported as capital gains or losses.
You can check the cost basis of each stock you get on the history page for the free stock.
For example, if you win a $10 stock and later sell it for $15 dollars, (1) the $10 stock gift will be reported as “Other Income” and (2) the $5 gain will be reported as capital gains.