On a Friday Request, Robinhood Asks SEC to Approve Accelerate Insider Stock Sales
Posted on 10/09/2021
On October 8, 2021, Robinhood Markets, Inc. requested the U.S. SEC to approve accelerated insider stock sales. The shares being registered were issued through the automatic conversion of Tranche 1 convertible notes in connection with Robinhood’s initial public offering. Robinhood seeks to declare the Resale S-1 effective at 4:30 PM ET on October 13, 2021. Robinhood will publicly announce when sales may be made off the Resale S-1.
Robinhood’s revenues are currently substantially dependent on Payment For Order Flow (PFOF) and Transaction Rebates. Robinhood’s transaction-based revenue model could be harmed by decreased levels of trading generally or by industry or regulatory changes that could tighten spreads on transactions.