Robinhood, which has said it wants to democratize finance, also sold a large chunk of its offering directly to its users via its app. That will test whether its customers will hold the stock or quickly dump it. Robinhood had angered customers when it halted certain trades in January, prompting some to plot to flip or bet against the company’s stock when it listed its shares.
The company has also faced several lawsuits and regulatory inquiries over its business. On Tuesday, it said in a filing that the Financial Industry Regulatory Authority was investigating its founders’ compliance with registration requirements.
That follows a $70 million fine that Robinhood paid to FINRA in July for misleading customers and harming them in outages. Last year, the company also paid $65 million to the Securities and Exchange Commission for misleading customers.
Over the weekend, Robinhood’s founders, Vlad Tenev and Baiju Bhatt, hosted a public version of its investor presentation for customers, taking questions about regulations and its business model. Mr. Tenev marveled at Robinhood’s rapid growth, while noting it had also “led to some real challenges.”
Article source: https://www.nytimes.com/2021/07/28/technology/robinhood-ipo-share-price.html