Reuters

Robinhood expands offering that allows retail investors to buy into IPOs

Directed Share Programs (DSPs), which Robinhood refers to as its “friends and family” offering, allows employees, customers, vendors, or others who have a relationship with the issuing company an opportunity to buy shares at the IPO price. As part of the DSP program, the company reserves a portion of IPO shares for a specific group of people and Robinhood helps distribute these shares to those select individuals. In May, the popular online brokerage unveiled the IPO Access offering, which gives retail investors the opportunity to buy shares in IPOs.