Can you trade shares of companies that have not actually gone public yet?

Robinhood recently introduced tokenized stock offerings for private firms like SpaceX and OpenAI. This video examines the mechanics of these assets, the potential risks for individual investors, and what this development signals for the future of the financial industry.

The core of this issue lies in the fact that these tokenized offerings were launched without the explicit approval of the underlying companies, SpaceX and OpenAI. Because these firms remain private, their shares are not traded on public exchanges, raising significant questions about the nature of these tokens.

The video explores how these digital instruments function and the specific hazards they present to those who purchase them. By analyzing the implications for the broader financial landscape, it highlights the tension between innovative trading platforms and traditional corporate governance.

Source: The Problem With Robinhood’s Tokenized Stock Offering