Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Livemint
Livemint
Business

Robinhood early investors granted SEC approval to sell shares

The investors won’t be allowed to sell any of affected shares before the company reports third-quarter results on Oct. 26 (Photo: Reuters)

The Securities and Exchange Commission is allowing certain early investors in Robinhood Markets Inc. to sell a portion of their holdings. 

The move applies to some shares held by investors who pumped additional funds into the company to avert a liquidity crunch after the late January surge in meme stocks such as GameStop Corp. The SEC’s approval took effect at 4:30 p.m. Wednesday in New York, in line with a request Robinhood made last week, according to a filing.

“Significant amounts of Robinhood shares will be unlocked in the coming months, a normal course following an IPO, but a course that we see potentially further pressuring Robinhood’s share price," JPMorgan Chase & Co. analysts Kenneth Worthington and Samantha Trent said in a Sept. 29 note to clients.

The investors won’t be allowed to sell any of affected shares before the company reports third-quarter results on Oct. 26. They also agreed to hold half of those shares until 28 days after receiving the SEC’s blessing, Robinhood said Friday in a statement.

Shares of the Menlo Park, California-based brokerage rose 1.2% to $41 at 10:40 a.m. in New York, extending their gain since the firm’s July initial public offering to 7.9%. 

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.