CPRX - Robinhood Markets' free-share program attracts scrutiny - WSJ

Robinhood Markets (NASDAQ:HOOD) is getting some pressure for its marketing tactic of giving customers a free share of stock for opening an account or referring friends. The company is facing scrutiny from regulators and may have to shoulder the cost of distributing proxy materials to the shareholders receiving the free shares, the Wall Street Journal reports. Brokerages, including Robinhood, are required to send proxy materials to public companies' shareholders ahead of annual meetings. They're then reimbursed by the public company for the cost of the distribution. Robinhood (HOOD) shares slip 0.3% in premarket trading. As a result, some companies have discovered that their bills for delivering proxy statements have swelled. Catalyst Pharmaceuticals (NASDAQ:CPRX), for one, said that Robinhood's (HOOD) program cost it more than $200K last year and that amount could increase this year.  “Catalyst believes that there are likely numerous companies facing this same issue, and that the costs of distributing

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Robinhood Markets' free-share program attracts scrutiny - WSJ