Robinhood, the brokerage app company, dropped its S-1 filing to go public Thursday, illustrating key insights into its business efforts and also the broader market.
Robinhood has played a critical role in the market this year, serving as one of the go-to venues for retail traders, particularly those from the Gen Z set.
Indeed, 2020 was an eventful year for the firm, which caters to younger users with, among other approaches, its cryptocurrency offerings. Yet Robinhood is no stranger to controversy, having stumbled amid outages during rocky market days — events that drew the ire of both customers and regulators. Most recently, FINRA announced it would fine the company $50 million for misleading customers.
There are three key takeaways from Robinhood’s plan to go public.
PFOF frets
Payment for order flow—the way most brokers like Robinhood make money—has long been a controversial topic on Wall Street.
The practice involves brokers routing client order flow to high-speed
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