{"id":578,"date":"2021-07-02T16:51:48","date_gmt":"2021-07-02T16:51:48","guid":{"rendered":"https:\/\/ancstockinvestments.com\/blog\/?p=578"},"modified":"2021-08-11T17:31:22","modified_gmt":"2021-08-11T17:31:22","slug":"robinhood-files-ipo-after-finras-biggest-fine-ever","status":"publish","type":"post","link":"https:\/\/ancstockinvestments.com\/blog\/2021\/07\/02\/robinhood-files-ipo-after-finras-biggest-fine-ever\/","title":{"rendered":"Robinhood Files for IPO After Incurring Record-Breaking Fine from Wall Street\u2019s Industry Regulator"},"content":{"rendered":"\n<p>A day after agreeing to pay the <a href=\"https:\/\/www.cnn.com\/2021\/06\/30\/investing\/robinhood-trading-fine-finra\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">biggest fine<\/a> ever in FINRA history, Robinhood has filed to go public.<\/p>\n\n\n\n<p>According to its filing with the Securities and Exchange Commission, the trading app plans to list its shares on the Nasdaq stock exchange under the symbol HOOD.<\/p>\n\n\n\n<p>While the company hasn\u2019t indicated its target valuation or date for its public debut, Robinhood hopes to raise $100 million from its hotly anticipated initial public offering (IPO).<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"684\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-Reveals-Surging-Loss-This-Year-After-2020-Pro-1024x684.jpg\" alt=\"\" class=\"wp-image-582 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-Reveals-Surging-Loss-This-Year-After-2020-Pro-1024x684.jpg 1024w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-Reveals-Surging-Loss-This-Year-After-2020-Pro-300x200.jpg 300w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-Reveals-Surging-Loss-This-Year-After-2020-Pro-768x513.jpg 768w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-Reveals-Surging-Loss-This-Year-After-2020-Pro-1536x1025.jpg 1536w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-Reveals-Surging-Loss-This-Year-After-2020-Pro-2048x1367.jpg 2048w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-Reveals-Surging-Loss-This-Year-After-2020-Pro-1200x801.jpg 1200w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-Reveals-Surging-Loss-This-Year-After-2020-Pro-1980x1322.jpg 1980w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/684;\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Robinhood has big plans for its customers<\/strong><\/h2>\n\n\n\n<p>The company plans to sell stock to its customers. In an unusual move, Robinhood will set aside 20% to 35% of its Class A stock for individual investors on its own platform, as opposed to bankers. It\u2019s also a much larger allocation for retail investors than in a typical IPO.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"515\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-IPO-Access-1024x515.jpg\" alt=\"\" class=\"wp-image-583 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-IPO-Access-1024x515.jpg 1024w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-IPO-Access-300x151.jpg 300w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-IPO-Access-768x386.jpg 768w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-IPO-Access-1200x604.jpg 1200w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2021\/07\/Robinhood-IPO-Access.jpg 1336w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/515;\" \/><\/figure>\n\n\n\n<p>Interest in crypto has been lucrative for the company as crypto-related transactions accounted for 17% of Robinhood\u2019s total revenue in Q1 of this year.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Also Read: <a href=\"https:\/\/ancstockinvestments.com\/blog\/2021\/07\/02\/sp-500-sets-fresh-record-high-closes-good-footin\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"S&amp;P 500 Sets Fresh Record High, Closes on a Good Footing (opens in a new tab)\">S&amp;P 500 Sets Fresh Record High, Closes on a Good Footing<\/a><\/h5>\n\n\n\n<p>Last year was a monumental year for Robinhood as the company\u2019s revenue surged to $959 million, a 245% jump from 2019. It also turned a $7.5 million profit for the first time last year amid a pandemic-fueled trading boom. This was a significant improvement from the $106.6 million loss it recorded in 2019.&nbsp;<\/p>\n\n\n\n<p>The Silicon Valley-based company currently manages more than $80 billion for the 18 million users on its platform, more than half of which are first-time brokerage accounts, according to Robinhood.&nbsp;<\/p>\n\n\n\n<p>After agreeing to pay $57 million to the Financial Industry Regulatory Authority (FINRA) and an additional $13 million to harmed investors, it\u2019s now unclear whether Robinhood will turn a profit this year.&nbsp;<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Become a Certified Trader with the&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.facebook.com\/ANC-Trading-Community-103276518151637\/?__cft__[0]=AZVNRW-GiiCXaR7yAOhR8QB2qu6lq9sFIdN7frxRLncBxqlV8pCLoteiEFEyb3RTip7rOmUECFv4modltZSG558gQ1p9_r1jbkT04CYS7BZFoOuXpVZY_D9WHSpQEIg4kWlcL1bhLVgmv2cRBRVNnigY&amp;__tn__=kK-R\" target=\"_blank\">ANC Trading Community<\/a><\/strong><\/h5>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why the regulatory headaches for Robinhood?<\/strong><\/h2>\n\n\n\n<p>On Wednesday, FINRA handed Robinhood a $70 million bill for hurting customers by providing misleading information and failing to provide support to its users.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" data-src=\"https:\/\/lh3.googleusercontent.com\/K0eVd4A7keEt-WUBzA6EORCuizmBdTxBlQBIMqp-AHX2CIunP41T_Kvp8VNB8DjHNAuChN5NrgRjiGSb-ptr6uL0n0dNC-5hpmENKanYV9unZVrHs1U4ZS5R6e4Zj7ercui_T2bG\" alt=\"Robinhood Files for IPO After Incurring FINRA's Biggest Fine Ever\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" \/><figcaption>Image Credit: <a href=\"https:\/\/www.morningbrew.com\/daily\/stories\/2021\/06\/30\/finra-levies-robinhood-biggest-fine-ever?utm_source=morning_brew\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Morning Brew (opens in a new tab)\">Morning Brew<\/a><\/figcaption><\/figure>\n\n\n\n<p>Glitches in the trading app even resulted in one 20-year-old\u2019s death by suicide last year after seeing an inaccurate balance. Some two major outages also resulted in tens of thousands of losses for users.&nbsp;<\/p>\n\n\n\n<p>The company also came under fire for its role in the GameStop saga in January this year. A <a href=\"https:\/\/www.telegraph.co.uk\/technology\/2021\/01\/29\/robinhood-facebook-finance-went-hero-zero-24-hours\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">massive buying frenzy<\/a> driven by retail investors on Reddit forced Robinhood to raise emergency funds that cost it $1.5 billion and tanked its finances for that quarter. This prompted the company to suspend purchases&#8211; a move that prompted a huge backlash among Robinhood users and saw the company lose $1.4 billion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h2>\n\n\n\n<p>US-listed IPOs have already raised over <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/link.morningbrew.com\/click\/24335234.1801158\/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy9yb2Jpbmhvb2QtaXBvLWZpbGluZy1zaG93cy1wb3dlci1vZi10aGUtbWVtZS1zdG9jay1ib29tLTExNjI1MTYzMTEzP21vZD1ocF9sZWFkX3Bvczc\/5fcc928cb841c862285e5c6fB472fba4c\" target=\"_blank\">$190 billion<\/a> so far in 2021, more than 2020\u2019s total. Robinhood\u2019s highly anticipated IPO will no doubt, up those numbers.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><em><strong>Featured Image Credit: Morning Bre<\/strong><\/em>w<\/h5>\n","protected":false},"excerpt":{"rendered":"<p>Less than 48 hours after agreeing to pay the biggest fine ever in FINRA history, Robinhood files to go public under the symbol HOOD&#8230;<\/p>\n","protected":false},"author":3,"featured_media":581,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,3,10],"tags":[123,56,122],"series":[],"ppma_author":[463],"class_list":["post-578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-investments","category-stock","tag-initial-public-offering","tag-ipo","tag-robinhood"],"yoast_head":"<!-- This site is optimized with the 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