Comments by "Kevin Street" (@Kevin_Street) on "Robinhood IPO Access $HOOD" video.

Thank you for another great video! This was a really interesting and well explained video on a subject that I know almost nothing about, so I really appreciated it. So, all those Robinhood investors getting in on IPOs... It seems like a real information asymmetry situation. I can see why the investment banks would appreciate this, since it could lead to a continuous pool of uninformed investors always ready to push up the price of IPO shares. I know you said that usually the banks under price the shares to attract uninformed investors, but I think there's a difference between an uninformed investor who's still a big client of the bank and a completely uniformed investor using an app. One is uninformed about this particular IPO but still trying to make money, and the other is somebody who's more often than not just gambling with no knowledge at all. Not all Robinhood investors are like that, of course. But a lot of them seem to be in it for fun and the chance they might get lucky. It's one of the great paradoxes of our time that more information is available on just about every subject than ever before, but most people aren't interested in using it.
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It's possible Robinhood will never be allocated enough shares to make a difference in the price of an IPO. If that's the case, then I think it would be better overall because there won't be any wild feedback effects from other large investors buying shares because they think the retail crowd will jump on them. It will be more like getting a seat at the table and just being treated like one of the group.
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