Robinhood Market Inc., the online brokerage firm based in Menlo Park, Calif., Unboxed a new platform later this week aimed at providing retail traders with the ability to buy stocks in IPOs ( IPO), a particular market area that has been an exclusive object for large Wall Street institutional investors.
In fact, Robinhood, the popular brokerage start-up that was the centerpiece of a retail buying frenzy led by a Reddit stock discussion group that had apparently succumbed to a host of institutional investors from Wall. Street on several occasions earlier this year by overcharging “ buying positions in so-called memes stocks such as Gamestop and AMC Entertainment, which had been heavily bypassed by institutional traders, appears to have launched a new investment platform ahead of its release. own initial public offering (IPO) in an attempt to “democratize” funding, a rare quest that often acts as a deterrent for institutional investors on Wall Street.
Robinhood allows retail businesses to buy IPOs
On top of that, as Robinhood unveiled its new IPO Access platform later this week, sources familiar with the matter were cited, claiming the brokerage firm would put aside some of its own initial offers for sale on the platform..
Meanwhile, explaining that a number of retail traders couldn’t get their hands on stocks during the IPO and had to buy them at higher prices after an initial jump, Robinhood said in an article blog, “Most of the IPO shares are usually awarded to wealthier institutions or investors.
With IPO Access, ordinary Robinhood investors will have the chance to enter at the IPO price, ”adding that the brokerage firm would work in conjunction with Wall St. investment banks to secure allowances for its IPO. individual investors.
The average jump in new stocks when it debuted in the US public market was 36% last year, Dealogic data was released..