.jpg){kind=avatar}
.jpg){kind=avatar}
Robinhood is building a platform to “democratize” initial public offerings, including its own, that would allow users of its trading app to snap up shares alongside Wall Street funds. The move could further erode Wall Street’s grip on stock market flotations. It would be easier to implement for Robinhood’s own IPO, given how companies and their investment bankers tightly control allocations to investors in new listings.
Providing access to IPOs could boost Robinhood’s appeal with users, some of whom criticized it over restrictions it placed on trading of heavily shorted “meme stocks” such as GameStop Corp following a Reddit-driven buying frenzy earlier this year. Robinhood said its clearinghouse forced it to place the curbs because it lacked sufficient capital to settle the trades.
unknownx500
