Robinhood's decision to democratize its own IPO could lead to wild trading in the new stock

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New for subscribers: Robinhood's decision to democratize its own IPO could lead to wild trading in the new stock. Check out CNBCPro today.

In this photo illustration the Robinhood Markets logo is seen on a smartphone and a pc screen. Robinhood's decision to democratize its IPO shares could leave the stock trading app exposed to the whims of the very amateur investors it's trying to help.

 

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Pro In other words, Wall Street would prefer to do it the old fashioned way; Not allow the public to participate in an Initial Public Offering so that brokerage houses can buy all the shares dirt cheap and then unload them on investors at an inflated price.

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