Robinhood IPO is ‘effectively selling investors on exploiting other investors,’ New Constructs CEO argues

As Robinhood (HOOD) prepares for its IPO on July 29 in a bid for a $35 billion valuation, some analysts warn that the company’s business model — specifically its reliance on payment for order flow (PFOF) — is an unseemly practice that won’t last.

“This IPO is effectively selling investors on exploiting other investors,” David Trainer, CEO of New Constructs, said on Yahoo Finance Live (video above). “The whole payment-for-order-flow business model is probably not going to be long for…


Source link

About search

Check Also

European Stocks Drop With US Tech Rally Faltering: Markets Wrap – Yahoo Finance

European Stocks Drop With US Tech Rally Faltering: Markets Wrap – Yahoo Finance

[unable to retrieve full-text content]European Stocks Drop With US Tech Rally Faltering: Markets Wrap  Yahoo Finance …

Leave a Reply

Your email address will not be published. Required fields are marked *