- July 29, 2021
- Posted by: Stratford Team
- Category: Business
FOX Business’ Charlie Gasparino on what to expect from Robinhood’s upcoming IPO and why its business model is causing concerns.
As Wall Street gears up for Robinhood’s highly-anticipated foray onto the open market, the company has quietly been laying the groundwork to become a standalone market maker, FOX Business has learned.
During its “roadshow” for its much-anticipated IPO, executives for the trading app said it’s looking to reduce its reliance on revenues from selling buy and sell orders to various market makers, a practice known as “payment for order flow,” or PFOF, on Wall Street.
Robinhood executives hinted during the meetings that they too will be looking at getting into the business, according to people with direct knowledge of the matter. Robinhood is pricing its IPO tonight and shares are scheduled to trade Thursday on the Nasdaq Stock Market under the symbol HOOD. It plans to sell 55 million shares, and raise as much as $2.3…