Robinhood, which touts its mission as “democratizing finance,” is trying out a new kind of I.P.O.: The online brokerage plans to sell as much as a third of its offering to customers through its app. What could go wrong?
It’s the most a major company has offered to ordinary investors in an I.P.O. Most businesses — including the hospital-scrubs maker Figs, which used a Robinhood program to sell stock to retail investors as part of its offering — have set aside roughly 1 percent of shares for retail investors.
The big risk is volatility.