Vlad Tenev Tells Robinhood Investors What To Expect

Robinhood Markets Inc HOOD is set to begin trading publicly on the Nasdaq Thursday. 

Robinhood's mission is to democratize finance for all, Robinhood CEO Vlad Tenev said Thursday on CNBC's "Squawk On The Street."

Starting from nothing, Tenev was able to create a company that now serves more than 22 million customers, Tenev told CNBC. 

Robinhood's stock will have "one of the largest retail allocations ever," he said: "we are very proud to give our customers access."

Tenev told CNBC he thinks it's important for there to be dialogue between retail investors and the companies in which they are invested. Robinhood plans "to try new things," he added. 

At the beginning of 2021, Robinhood came under scrutiny for its business model, in which it accepts payments for order flow rather than charging its users commissions on their trades.

This business model, which Robinhood helped pioneer, has become the standard business model for retail brokerages in the U.S., Tenev said. 

See Also: Robinhood Gets $32B Valuation As It Prices IPO At Lower End Of Range — Lack Of Investor Interest Or A 'Conscious Decision?'

Potential investors can expect to see Robinhood diversify its business and revenue streams over time, he said. 

The company aims to turn first-time investors into long-term investors, Tenev told CNBC. 

HOOD Price Action: At last check Thursday, Robinhood was indicated to begin trading at $39 per share. 

Photo: by Tech Daily from Flickr.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsPreviewsIPOsMediaTrading IdeasCNBCSquawk on the StreetVlad Tenev
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!