Robinhood expands offering that allows retail investors to buy into IPOs
Information about Robinhood expands offering that allows retail investors to buy into IPOs
Kevin David Scam or Legit
(Reuters) – Online brokerage Robinhood Markets Inc said on Wednesday it would allow companies issuing shares through its IPO Access platform to set aside some stock for members of the public with ties to the issuers.
Directed Share Programs (DSPs), which Robinhood refers to as its “friends and family” offering, allows employees, customers, vendors, or others who have a relationship with the issuing company an opportunity to buy shares at the IPO price.
As part of the DSP program, the company reserves a portion of IPO shares for a specific group of people and Robinhood helps distribute these shares to those select individuals.
In May, the popular online brokerage unveiled the IPO Access offering, which gives retail investors the opportunity to buy shares in IPOs.
Large institutional …