Stock Groups

Robinhood expands offering that allows retail investors to buy into IPOs -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO – Robinhood Markets, Inc.’s logo is displayed at a Wall Street pop-up after its IPO, New York City, U.S.A, July 29, 2021. REUTERS/Andrew Kelly/File Photograph

(Reuters). – Online brokerage Robinhood Markets Inc (NASDAQ: ) stated Wednesday that companies can issue shares via its IPO Access platform and stock will be available for those with ties to the issuers.

Robinhood’s “friends and families” offer, Directed Share Programmes (DSPs), allows customers, employees, vendors or anyone who has a close relationship to Robinhood to acquire shares at the IPO-price.

Robinhood assists in the distribution of these shares.

The popular online brokerage launched the IPO Access offer in May. This allows retail investors to purchase shares in IPOs.

Large institutions and large funds are traditionally the first to be allocated on IPOs. This is because the share allocations of investment banks tend to favor Wall Street clients with deep pockets.

Retail investors are often left with little choice but to purchase stock in a company that has just been listed. This means they will have to wait for the shares of the newly listed company’s shares to trade, which can sometimes mean paying more.

Robinhood’s new platform allows Wall Street investment banks and Robinhood to work together with retail investors in order to receive allocations.

Robinhood has partnered with 12 companies that have made their IPOs available to its customers, as of October 31.

This latest offer will allow IPO shares to be made available to a wider range of retail investors.

Disclaimer Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]