They don’t exactly rob from the rich to pay the poor, but Robinhood undoubtedly has made life easier for people who don’t manage hedge funds – and has become a competitor for the big stock traders.
The company is set to capitalize on its success, having filed confidential paperwork for an initial public offering (IPO).
Robinhood’s blog post said that the “The number of shares to be offered and the price range for the proposed offering have not yet been determined.
“The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions.”
Robinhood was among the businesses to receive a boost from the pandemic, pulling new customers to its app for its ease to operate and commission-free trades.
Perhaps showing the truth of “no such thing as bad publicity,” during a Reddit-fueled couple of weeks’ worth of stock-trading action in January, Robinhood added 3 million users, JMP Securities estimated.
Robinhood then found the spotlight because of its decision to freeze GameStop trades and then maintain strong restrictions on the highly-shorted stock targeted by Reddit traders.
CNBC reported earlier this month that Robinhood had chosen the Nasdaq for its IPO. Goldman Sachs has been advising the company on the IPO.
Robinhood was founded in 2013 by Vlad Tenev and Baiju Bhatt, who were roommates at Stanford, with the strategy to allow everyday retail investors to trade stocks without paying commissions.
Robinhood is among the new players on the platform. It allows customers to buy fractional shares and has been eager to embrace cryptocurrency.
Users can purchase bitcoin, ethereum and other digital currencies on the app the same way they buy stocks.
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