Reddit broker Robinhood plans IPO

Article Excerpt

Robinhood Markets Inc. operates an online platform that lets users make unlimited commission-free trades in stocks, exchange-traded funds, options and cryptocurrencies. Most of its revenue comes from the fees it collects from routing trades to stock market makers and brokers. The company is now offering 55 million shares at between $38 and $42, which will give about $2.3 billion. Overall, the company will have a market capitalization of about $35 billion. The new shares will trade on Nasdaq under the “HOOD” symbol. Robinhood’s no-fee trading has helped it attract a strong following among young investors who like to speculate in companies featured on social media platforms like Reddit online chat forums. It now has 22.5 million users, up from 18 million in the first quarter of 2021. That should help it compete with larger firms such as Charles Schwab. We’ll keep an eye on the progress of the share offering and update our advice when Robinhood sets its IPO price. price…