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Companies Complain About Robinhood Stock Giveaway #Shorts
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104,887 Views • Aug 27, 2021 • Click to toggle off description
#Shorts
Robinhood Markets Inc. has for years given customers a free share of stock for opening an account or referring friends. Brokerages like Robinhood are required to deliver proxy materials to a public company’s shareholders ahead of annual meetings. They are then reimbursed by the public company at a rate of 25 cents per distribution.

This means that Robinhood’s stock giveaways have saddled some companies with larger bills for delivering proxy statements. Now, the practice is sparking a backlash from companies and scrutiny from market regulators.

One company pushing back is Catalyst Pharmaceuticals Inc., which says Robinhood’s program cost it almost $250,000 last year and could be even more expensive this year.
$HOOD

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RYD date created : 2022-01-19T19:12:15.562454Z
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@PBoyle

3 years ago

Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance : Marc De Mesel, Annie Chen, Nate Stapleton,Timothy Baird, WIlam, Robertas, Hernan Merino, Random Encounter, Nieuwsbrief Ikwil, Bee Positive Consulting, hyunjung Kim, John Cadena, Ian Tracey, Callum McLean, Oscar, Simon Pena, Ed, Pavle Obradovic, Erik Van Ekelenburg, David O'Connor, Zak Patterson, Pjotr Bekkering, Alex, Robert W Proudfoot, pooh shmoo, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Milan Tomic, Mark Hooker, Artem Vasenin, P H, Sebastian, Michal Lacko, Peter Bočan, Michael Pierce, V Jordan, Gil, HalfwitHam, Mark Brophy, Patrick T, David Urdenata, Juan Valdez, Bruce Roberts, Chad Norman, Bruce Roberts, Shamikh Rana, Friday Guy, Marc De Mesel, Augusto Ramos, Soy Boomer Doomer, Bob Slartabartfast, Robert Feiler, Camil Dbouk, Erik Montesinos, Matthew Loos, Az Indragiri, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Dominik Auerbach, Gurmeet Kaushal, John Hall, Dara Mo, Josef Goergen, Wilbert Cheng, Daniel Talero, Cogitecture, Jaroslav Tupý, Trevor Lucey JB Weld, Alex, Sunny, Carlos Figuera, Peter Pomelov, Null065, Rick Thor, MeBerzerk, Henry Nguyen, Sola F, The Collier, Carlos Mejia, J Wadia, Bitcoin OG, easy boekhouding, Albert, Eugene Jung, Oisin Quinn, Daniel Cervini, Jonathon Yong, Iris Ji, Emil Nicolaie Perhinschi, Charles, Leszek Frankowski, Gerard Scott Eli Auto, Excks, Michael Li, Par Hedman, Praveen Mishra, Gerard Scott, joel köykkä, Areeb Ahmed, Luis Torres, Smith Vilcapoma, David Wang, Yazan Qaraqish, Rodolfo Cornetti, Daniel Winroth, johnny, Nick Jerrat, Chris Houston, Alastair Currie, Robert Griffin, Andrei, zizi Golo, Fab Vida, Constantin Petrenco, pawel irisik, NotAScam, James Halliday, 22 Dust, Carsten Baukrowitz, Heinrich, Arron T, Ben Brown, Brian Dennis, Stephen Mortimer (to The Moon), Ryan B. Hicks, B S, Liam, Logan Vrankovic, Sam coatham, William Heaton, Paul McCourt, Andrzej Jasionowski, Daniel, Aaryan Koura, mikhail tyurin, Steven, Christopher Boersma, Dave Cooke, Ulf Lundblad, Cozy thang, Dorothy Watson, Greg Blake, Simon Bone, Livermores Quant, The Collier Report, Scott Gardner, The Man Koala, Brian McCullough, Spardasquad, Daniel S. Smith, Finance Student, Milton Danielsson, Tan Jin Da, Julie, Mohammad Rehman, James Wallace, Daniel Poellmann, Edosa Odigie, Bill Baran, Dixon Yuen, joey smit, Josh Ge, Marek Novák, Charles Oosthuizen, Stamatis Drepaniotis Michael Smith, Etienne Cordonnier, Ahmed Hamadto, Chris Davey, Mike Farmwald, Kevin Davis, Michael A. Mayo, Lachezar Georgiev, Kamet Batra, Bradley Johnson, Sagar Gudi, Michael Chessar, Kate ATL, Tong Cheung, Lady Dje, James Barnes, Chris Hall, Kurt Johnston, ICBM Catcher Juan Valdes, Jens Marut, KernelSC, Josh Garcia, Linn Engström, Veltsh, Konrad P-kala, Pastacat and Yoshinao Kumagai

17 |

@Jtking3000

3 years ago

I never thought that giving away free shares could manipulate companies that much.

367 |

@unsavvytravelers2346

2 years ago

The inital graphic accompanying "a Florida based drug maker" was gold

278 |

@JackDuffley

3 years ago

25 cents per email!!

78 |

@RushingRussianify

1 year ago

Now thats how you expand a revenue model. Creative thinking Robinhood

26 |

@maestrovso

2 years ago

I had no idea that I I would learn some obscure fact in under a minute. The most underrated channel on Youtube.

41 |

@irvingchies1626

2 years ago

Maybe if the SEC wasn't so stupid as to wanting them to "pay back" for what is essentially a free service...

11 |

@alhollywood6486

3 years ago

Talk about payment for order flow!😂

77 |

@1pwNz0mb13Z

3 years ago

Robinhood not only skrews it's customers but also public companies now

24 |

@cat-.-

1 year ago

This story inspired me to buy $1 catalyst pharmaceutical

14 |

@samsonsoturian6013

3 years ago

Well, I wouldn't have guessed Robinhood actually made money with those promo stocks......

136 |

@ranevc

2 years ago

A Florida based drug maker stock pic was gold! For a sec I thought he must be the CEO.

16 |

@elementaltamago1297

3 years ago

We're reaching levels of rent-seeking that shouldn't even be possible

132 |

@Kevin_Street

3 years ago

And the vast majority of those new shareholders will never vote in or even appoint a proxy for the meetings. They probably won't even hold the shares very long.

9 |

@tapanginoya583

3 years ago

Man these shorts are amazing 👌

28 |

@aron5377

3 years ago

HAHA giving away shares so you can charge the company for it

10 |

@gneruinseruihnutshnu

3 years ago

25 cents for sending out email? That is ... interesting. For the lack of more expressive words.

9 |

@whheaton

3 years ago

I am a patreon supporter and I just want to say that I prefer the in depth videos. It is your depth of knowledge from your background and your attention to detail and historical perspective that made me support you. I understand you wanting to grow the channel and maybe these are also tiktoks, but I just wanted to give my perspective and why I support you. Also nice rolex kermit. What we need is a video showing your watch collection. Maybe do a collab with Mr Wonderful or Teddy Baldasarre etc. You could pick up more subs from that world and it is clearly something you enjoy from the watches I see you wear in your videos.

4 |

@deejay7339

2 years ago

Interesting short. I wonder if the SEC will ever step in. I believe there are rules for soliciting to accredited investors vs non-accredited. There should be something similar for handing out free shares, because it has an adverse affect.

10 |

@lvran28

3 years ago

Thank you so much for your insight, your passion for economics comes through and makes learning from you a pleasure.

8 |

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