WASHINGTON— Robinhood Marketplaces Inc. has for many years specified buyers a free share of stock for opening an account or referring buddies. The observe could soon price tag the online brokerage a good deal much more dollars.
Brokerages like Robinhood are essential to supply proxy elements to a community company’s shareholders in advance of annual conferences. They are then reimbursed by the public enterprise for the value of distribution.
This suggests that Robinhood’s inventory giveaways have saddled some corporations with greater bills for providing proxy statements. Now, the practice is sparking a backlash from corporations and scrutiny from market place