Robinhood Users Get to Own Robinhood
Also employee trading inquiries, Deutsche Bank cost initiatives, Wu-Tang and intern crime.
The basic way an initial public offering works is:
In Step 2, the company and the banks try to allocate the stock mostly to long-term shareholders who do not intend to flip it, which means that there will not be all that much supply in Step 3. And because the retail investors couldn’t buy it at the IPO price in Step 2, they have to buy it at the public price in Step 3, which means that there will automatically be demand. Maybe not if it’s a boring company, but if it’s some sexy consumer-facing tech company then a lot of retail investors will want to buy it in Step 3 and will push up the price, so there will be a nice “IPO pop”: If you buy at the IPO price, you can sell at a much higher price the next day.