Robinhood expands offering that allows retail investors to buy into IPOs

FILE PHOTO: The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly/File Photo

(Reuters) - Online brokerage Robinhood Markets Inc said on Wednesday it would allow companies issuing shares through its IPO Access platform to set aside some stock for members of the public with ties to the issuers.

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.