Robinhood is said to have filed confidentially for U.S. IPO
bnnbloomberg.ca
bnnbloomberg.ca
Oopsie!
that sounds like securities fraud. That's the reason why gamestop didn't do a share offering even though the price was ridiculously overvalued.
>GameStop decided it was restricted under U.S. financial regulations from selling shares because it was in possession of significant information about its finances that was not yet available to the public, the sources said. The SEC requires companies to have released such information when conducting stock sales.
>The information pertained to GameStop’s fiscal fourth quarter, which ended at the end of January. By the time its shares took off in the second half of January, company executives had already compiled data and had a clear picture of what the quarter would look like, the sources said.
>GameStop could have gone ahead with a stock sale by releasing preliminary earnings. But such a move, carried out for the purposes of a stock sale, came with significant logistical hurdles and regulatory risk that the company was not willing to accept, one of the sources said. The SEC had said it would scrutinize how companies took advantage of the trading volatility to sell stock and had asked that they provide more information to investors about the potential risks.
I expect at the end of next year, a lot of people closing accounts and getting tax info.
Probably, you wouldn’t intentionally IPO immediately after a PR disaster unless you had too.
I really really hope the SEC makes them disclose all the gory details of their “payment for order flow” stuff. I mean, basically, smart people who write about it (Levine, patio11), say it’s harmless/helpful. But I don’t think it sits right with anyone. Certainly not with me .
Or, more accurately, the extreme volatility of GME led to increased collateral requirements that Robinhood couldn't meet. (It was like billions of dollars, iirc.) Or, otherwise, it's not that Robinhood was undercapitalized (or even is undercapitalized!)—just that the goalposts moved suddenly and unexpectedly.
PFOF is still a little squirrel-y. Ditto on Levine and others, and tied up in all that T+2 settlement issue, too.
An exit is an exit, a liquidity event is a liquidity event.
De-risking means being able to support your lifestyle no matter what happens, so this does that regardless of whatever quantum states of adversity could lurk behind the scenes.