Robinhood on the swing, between retail and sales
Shares of the famous trading App / Company, RobinHood, just listed in the US, have gone a bit crazy. In the first few days it was up 50% as the start of options trading led to an explosion in options volatility with an inflow that took the stock to $ 70, doubling from the worst post IPO days.
Shares of Robinhood today plummeted as much as 12% in pre-market trading Thursday after original investors filed for sale of 97.88 million shares less than a week after its initial public offering. None of the proceeds will be received by the company, with the selling shareholders receiving all funds from the sales, according to a document filed with the United States Securities and Exchange Commission.
The move comes just a day after a wave of retail dealers joined large investors, such as Cathie Wood's flagship exchange-traded fund ARK Innovation, in buying the stock. ARK managed to buy to the max.
Surprisingly, employees and officials of HOOD would be allowed to sell up to 15% of their holdings on day one of trading, which many of them did resulting in a sad first day post IPO performance. And now, thanks to the bizarre upward surge, the temptation has proved too strong and insiders intend to continue dumping the vastly overvalued stocks.
The question that everyone should ask is: but does the SEC think about regulating only companies that operate in virtual currencies, or does it think it is necessary to intervene in this field too?
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The article Robinhood in the swing, between retail and sales comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/robinhood-in-altalena-fra-retail-e-svendite/ on Thu, 05 Aug 2021 15:14:36 +0000.