This week’s initial public offering of Robinhood Markets Inc., mother or father of the wildly popular trading app, isn’t simply one of the talked-about IPOs of 2021. It’s the newest in an extended collection of pitches to on a regular basis buyers: Share in your dealer’s wealth by shopping for shares in your dealer.
In uncommon circumstances, such pitches have paid off huge time. Extra typically, you’d have achieved your self a favor by taking roughly half your cash and lighting it on hearth as an alternative.
Simply as Robinhood isn’t the first brokerage to offer commission-free trading, it isn’t the primary to hunt to “democratize” investing or to sell a piece of itself to its own customers.
On June 23, 1971, Merrill Lynch, Pierce, Fenner & Smith Inc. turned the primary New York Inventory Change agency catering to particular person buyers to offer its shares to the public.
Thirsty for recent capital in a struggling stock market, Merrill flogged its shares to its personal prospects, tapping the agency’s “superior recognition amongst that huge section of the inhabitants,” reported The Wall Road Journal the following day. “Primarily small buyers, the type long championed by Merrill Lynch, rapidly bought all the quantity.”
Ought to You Be Shopping for What Robinhood Is Promoting? Source link Ought to You Be Shopping for What Robinhood Is Promoting?