Robinhood Markets Inc. said on Thursday that it intends to launch a platform that will enable users to buy shares in an initial public offering, much like the Wall Street funds. Such an option, it added, will be made available for its own IPO as well.
The move will further help loosen Wall Street’s grip on new listings. Currently, amateur traders and users of Robinhood’s platform face restrictions on buying shares of a company before it starts publicly trading on the stock exchange.
Deliveroo also wants amateur traders to participate in its IPO
Notable funds, however, buy into an initial public offering and benefit from a significant increase in the price when the stock debuts. In 2020, U.S. listings saw an average of a 36% pop on their first day of trading on the stock market, as per Dealogic.
In a bid to put an end to the amateur traders’ disadvantage, Robinhood said that it will allow its 13 million users to participate in its IPO and buy a chunk of its shares.
The American financial services company’s news comes only days after Deliveroo Holdings plc also announced similar plans. A third-party provider took it upon itself to administer the process for the food delivery firm that is expressed plans of a London-listing earlier this month.
GameStop shares jump over 50% on Thursday
In other news from the United States, GameStop (NYSE: GME) pulled out of a five-day losing streak on Thursday as its shares gained over 50% in the stock market, making it clear that the retail investors are still not done with the trading frenzy.
In the prior session, the American videogames retailer had slid 33% after it reported lower than expected sales and earnings in the fiscal fourth quarter.
GameStop shares that you can conveniently trade online via a range of user-friendly apps opened at £89.53 per share on Thursday and closed the regular session at a per-share price of £133.88. In after-hours trading, the stock was reported exchanging hands at £135.
The Grapevine-headquartered company had started the year at a sharply lower £12.56 per share and had touched a high of £253 per share in the last week of January. GameStop gained more than 200% in the stock market in 2020.
At the time of writing, the consumer electronics and gaming merchandise retailer has a market cap of £9.35 billion.
The post Robinhood intends to further loosen Wall Street’s grip on new listings appeared first on Invezz.
from USA – Invezz https://ift.tt/31inBls
Wajeeh Khan
Click here to Join RICH DAD SUMMIT online with ROBERT KIYOSAKI - $1 Training for Passive Income: https://bit.ly/RichDadSummitWealthTraining
0 Comments