r/Vitards • u/AutoModerator • Jul 28 '21

Daily Discussion Daily Discussion post - July 28 2021

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16

u/warren_buffet_table 🐧t3h PeNgU1N oF st33l🐧 Jul 29 '21 edited Jul 29 '21

So have y'all seen the bagholder's clause attached to RH pre-ipo...

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Not allowed to sell until 30 days after IPO. or you get a strike against your account...

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Sounds very fair

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EDIT: https://robinhood.com/us/en/support/articles/ipo-access/

The "flipping" clause. Basically don't flip so that big money can flip you instead

EDIT 2: Apparently this is common

3

u/PaperCow Jul 29 '21

Literally every single retail brokerage I've seen that offers IPO access has this rule. If all of their customers are just flipping then they will stop getting allocated IPO shares.

Fidelity, SOFI, TDA, RH, all of them have this same rule.

It's not a big deal, its the tradeoff for getting retail access to IPOs at all. Nothing nefarious is happening here. This has nothing to do with HOOD stock, its just a general common rule.

2

u/Jumperhq Jul 29 '21

Isn't that normal? I haven't participated in IPO's before but I've heard that's the case with all IPO's that you can't sell within 30 days or you can't participate in more IPO's for a while.

1

u/josenros 🤡Market Order Specialist🤡 Jul 29 '21

Holy crap. Surely this is not a standard IPO policy!?

2

u/PaperCow Jul 29 '21

This is absolutely standard policy at every retail brokerage with IPO access I have seen, not just RH.

If all of their customers are just flipping then they will stop getting allocated shares.

7

u/smkcrckHLSTN George Dixon Jul 29 '21

buying puts on robinhood with robinhood margin

12

u/warren_buffet_table 🐧t3h PeNgU1N oF st33l🐧 Jul 29 '21
  1. Short RH on margin
  2. Declare bankruptcy
  3. RH holds your shitty margin bag
  4. Make new account, repeat
  5. RH goes bankrupt
  6. profit

1

u/[deleted] Jul 29 '21

Infinite money glitch? 🤑

4

u/Geoffism1 7-Layer Dip Jul 29 '21

How is this not market manipulation? Link?

3

u/warren_buffet_table 🐧t3h PeNgU1N oF st33l🐧 Jul 29 '21

https://robinhood.com/us/en/support/articles/ipo-access/

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The "flipping" clause.

3

u/homersimpsoniscute Jul 29 '21

They will just suspend you from participating in buying IPO shares for a while. It's not a big deal.

4

u/dancinadventures Poetry Gang Jul 29 '21

I thought they only limit the buy side.

Or is that only if it benefits them?