Robinhood CEO Says Only 2% of Users Trade on Margin

Robinhood CEO Says Only 2% of Users Trade on Margin

Assessment

Interactive Video

Business

University

Hard

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The video discusses the risks associated with trading on margin, particularly for less sophisticated investors. It highlights the trading behaviors of Robin Hood customers, noting that most engage in long-term investing. The video explains Robin Hood's margin policies, including the Robin Hood Instant feature and the requirements for borrowing on margin. It emphasizes the ethical responsibility to protect less sophisticated investors from financial harm. Finally, it addresses liquidity management and capital requirements, explaining how Robin Hood prepares for potential financial challenges.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of the $1000 margin provided by Robin Hood?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the term 'reverse Robin Hood' imply in the context of financial trading?

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