CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Reddit confirms submission to SEC for IPO

By David Burrows

07:52, 16 December 2021

Reddit message boards
Message boards operator Reddit moves towards public listing in a year that has seen user numbers rapidly increase – Photo: Alamy

Social news website and online message boards operator Reddit has submitted a draft registration statement with the Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO) of its common stock.

The number of shares and price range for the proposed offer have yet to be determined.

The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions.

Reddit was not, for regulatory reasons, able to say anything further.

Expected valuations

Back in September, reported that Reddit was seeking to hire investment bankers and lawyers for an initial share sale in New York.

Oil - Crude

72.95 Price
-0.550% 1D Chg, %
Long position overnight fee -0.0224%
Short position overnight fee 0.0005%
Overnight fee time 22:00 (UTC)
Spread 0.030


15,828.50 Price
+0.040% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 1.8


2,018.43 Price
-0.540% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee 0.0118%
Overnight fee time 22:00 (UTC)
Spread 0.50


0.63 Price
+0.130% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

In August, the company was valued at $10bn (£7.56bn) in a private fundraising event. It was reported in September that Redditt was hopeful that the valuation would be closer to $15bn by the time of an IPO in early 2022.

The San Francisco-based company saw its profile rise dramatically this year after retail investors flocked to its message boards for tips on trading GameStop (GME) and other meme stocks.

The Reddit community shares content by posting stories, links, images and videos. Comments and posts are then upvoted or downvoted so that the most interesting content rises to the top.

It has been a stellar year for Reddit. According to the Wall Street Journal, Reddit averaged 52 million active users in October – up 44% on the same month a year earlier.

Read more: Reddit plans IPO in New York

Markets in this article

GameStop Corp (Extended Hours)
15.14 USD
-1.86 -11.050%
GameStop Corp (Extended Hours)
15.14 USD
-1.86 -11.050%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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