New research from analysts at JPMorgan Chase & Co. finds that shareholders of stocks such as Coinbase Global Inc (NASDAQ: COIN) and Robinhood Markets Inc (NASDAQ: HOOD) face a higher risk of dilution.
What Happened: In a note to clients seen by CoinDesk on Monday, JPMorgan equity research analyst Kenneth Worthington explained that the dilution risk came from restricted stock unit (RSU) offerings in employee compensation plans.
“Coinbase and Robinhood, like their tech-company peers, issue substantial equity to company employees allowing companies to both attract and incentivize employees while keeping cash compensation lower,” wrote the analyst.
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