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Robinhood Users Call Out Company Over Refusal to Pay Out Profits on SVB Stock

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Robinhood-Investors King

American financial services company that facilitates commission-free trading of stocks and exchange-traded funds via mobile app Robinhood has been called out by users over refusal to pay out profits made on Silicon Valley Bank stock (SBNY) following the collapse of the bank.

Several Robinhood users who predicted a possible slump in the bank stock price, swiftly purchased put options on the stocks before it collapsed.

The problem is, according to users of the trading app, Robinhood isn’t allowing them to sell their contracts or get paid, while a slew of the contracts is set to expire on Friday which has left them frustrated.

Several users of the platform who have taken to Twitter to express their grievances disclosed that their trades on SBNY stock were halted by the firm after it disclosed that they won’t be able to cash out their profit as the stock is no longer trading.

Users have continued to ask the all-important question of why they were allowed to buy put contracts on stocks they didn’t own in the first place if that was a condition for getting paid if a situation like this played out. On the request to know if the stock is going to trade again, the company revealed that it doesn’t know yet.

A Twitter user @OmniBubblebear, took to his Twitter handle to share the message he received from Robinhood after trading on SBNY stock, the message reads,

“Per your request, I’ve included some additional details about your SBNY puts. As discussed, you are currently unable to exercise the long puts because you currently do not hold shares of SBNY. As you may know, Robinhood does not allow short positions.

“I also looked into the possibility of transferring the position out of Robinhood, however, ACAT transfers take 5-7 business days to complete, and your options expire on 03/17/2023. There is no way for us to expedite a transfer, so the contracts would most likely expire before the transfer completes.

“I know this is not the outcome you were expecting, but I hope I was able to clarify why we are unable to exercise your long puts. If you have any additional questions regarding the stock or the halt, I recommend reaching out to SBNY investor relations.”

Following the incessant complaints that have seen users call out the company, Robinhood CEO Vlad Tenev took to his Twitter handle to tweet that the firm was working to resolve the issue as soon as possible.

Investors King understands that about three months ago, Robinhood was hit with a huge fine of $70 million for misleading customers and encouraging potentially ruinous trades. The app reportedly used push alerts that encouraged users to make trades that could potentially put them in debt.

The company lost users after federal regulators fined them for several misleading practices. In a bid to lure users back on its platform, it introduced fee-free individual retirement accounts aimed at gig workers, who don’t always have access to retirement savings plans. 

According to the Wall Street Journal, roughly 80% of Robinhood’s customers are millennials and the average customer age is just 26. Robinhood typically only supports trading stocks and ETFs listed on the Nasdaq and New York Stock Exchange, and normally does not support over-the-counter securities such as those traded on OTC Markets.

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Zenith Bank to Pay N109.88bn Dividends to Shareholders for 2023

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Zenith Bank - Investors King

Zenith Bank, one of Nigeria’s leading financial institutions, is set to distribute dividends totaling N109.88 billion to its shareholders for the 2023 financial year.

The announcement was made as part of the bank’s annual report filed with the Nigerian Exchange Limited on Monday.

The dividends amount to N4.00 per share. This includes a final dividend of N3.50 per share and an interim dividend of N0.50 per share paid earlier in the year.

The proposed dividends are subject to approval by shareholders at the next Annual General Meeting (AGM) and are payable from the retained earnings accounts as of December 31, 2023.

Throughout the fiscal year, Zenith Bank’s gross earnings surged by 125.50 percent to N2.13 trillion compared to N945 billion in the previous year.

The increase in gross earnings contributed to the bank’s impressive profit after tax, which increased to N676.91 billion, an increase from N223.91 billion recorded in 2022.

This positive performance was driven by the increase in interest and similar income, which rose to N1.14 trillion from N540 billion.

However, the bank experienced a decline in net income on fees and commission, dropping to N109.31 billion from N132.79 billion in 2022, indicating a 17.68 percent decrease.

This decline was attributed to an increase in fees and commission expenses, which grew to N68.21 billion from N24.42 billion in the previous year.

Also, Zenith Bank disclosed various operational expenses incurred during the year, including insurance premiums paid to Zenith General Insurance Limited and Prudential Zenith, as well as payments for information technology services rendered by Cyberspace Network.

 

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Nigerian Exchange Limited

VFD Group Plc’s Rights Issue Listed on NGX’s Daily Official List

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The Nigerian Exchange Limited (NGX) has listed VFD Group Plc’s Rights Issue on its Daily Official List.

The move follows the approval by the Securities and Exchange Commission (SEC) and represents a crucial step in the company’s growth trajectory.

The Rights Issue comprises 63,342,455 ordinary shares of 50 kobo each priced at N197.33 per share, bringing the total value of the issue to N12.499 billion. With this listing, VFD Group Plc’s total issued and fully paid-up shares have surged from 190,027,365 to 253,369,820 ordinary shares.

According to a report by NGX, the additional shares listed arose from VFD’s Rights Issue on the basis of one ordinary share for every three ordinary shares held as of October 12, 2023.

This move underscores VFD Group Plc’s commitment to expanding its shareholder base and enhancing liquidity in the market.

The approval by SEC for the Rights Issue further solidifies VFD Group Plc’s position in the market. Gbeminiyi Shoda, the Group Company Secretary of VFD Group Plc, confirmed that the Qualification Date for the Rights Issue was October 12, 2023, with the application list opening on December 20, 2023, for a maximum period of 31 days.

VFD Group Plc’s Rights Issue comes on the heels of its recent listing on the Main Board of the Nigerian Exchange Limited (NGX). The listing of 190 million units of shares at N244.88 per share added N46.527 billion to NGX’s market capitalization, reflecting the company’s growing influence in the Nigerian capital market.

VFD Group Plc, known for its sector-agnostic proprietary investment approach, aims to create positive and socially conscious ecosystems by aggregating potentially viable businesses. The Rights Issue listing underscores the company’s strategic move to increase visibility, access capital, and enhance liquidity, ultimately benefiting its investors and stakeholders.

Investors and market analysts are closely watching the developments surrounding VFD Group Plc as it continues to expand its footprint in the Nigerian financial landscape. With the successful listing of its Rights Issue on NGX, the company is poised for further growth and value creation in the market.

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Nigerian Exchange Limited

Nigerian Exchange Sees Historic N18.203tn Gain in Q1, 2024

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Nigerian Exchange Limited - Investors King

The Nigerian Exchange (NGX) has kicked off 2024 with an unprecedented gain as stock investors pocketed N18.203 trillion gain in the first quarter alone.

Investors are reaping the rewards of a bullish trading pattern that has extended from the inauguration of President Bola Ahmed Tinubu in 2023 into the new year.

The Exchange All-Share Index closed at 74,773.77 index points in 2023, a 45.90% gain it carried into the new year while the market capitalization surged to N40.917 trillion by the end of the year.

The first quarter of 2024 witnessed the continuation of this bullish trend as many companies grew in market capital and profit.

In the first quarter, FBN Holdings joined the trillion-naira club while Dangote Cement emerged as the first entity to achieve a market cap of N10tn.

The listing of Transcorp Power Plc further fueled market capitalisation close to the historic N60 trillion mark by March’s end.

Oscar Onyema, the immediate past Managing Director/Chief Executive Officer of the Nigerian Exchange Group, likened the market’s boom to the pre-2008 global meltdown period, highlighting the parallels in euphoria and growth.

Despite challenges posed by escalating inflation, potential interest rate adjustments, and volatile exchange rates, investor confidence remained steadfast.

The NGX-Alternative Security Market recorded a 135.25% gain amid economic uncertainties.

Analysts dissecting the market’s performance emphasized the role of sentiment over fundamentals, indicating a surge driven by optimism rather than concrete economic improvements.

While profit-taking activities and market volatility punctuated the quarter, the overall trajectory remained upward.

Looking ahead, projections for the second quarter anticipate mixed performance, with factors like macroeconomic instabilities and corporate actions shaping investor sentiment.

Nevertheless, the NGX’s stellar performance in Q1 2024 stands as a testament to the resilience and potential of the Nigerian equities market, offering a beacon of hope amid global economic uncertainties.

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