Robinhood CEO Says Only 2% of Users Trade on Margin

Robinhood CEO Says Only 2% of Users Trade on Margin

Assessment

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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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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of Robin Hood's customers engage in margin borrowing?

10%

3%

13%

2%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is Robin Hood Instant?

A type of margin account

A courtesy allowing immediate access to deposited funds

A premium service for gold customers

A loan service for buying stocks

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is there a greater responsibility towards less sophisticated investors?

They have more investment options

They are more likely to take risks

They have more financial knowledge

Their financial stability can be severely impacted

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What concern is raised about the financial industry in relation to less wealthy individuals?

They have better investment opportunities

They are more knowledgeable

They are often taken advantage of

They receive more benefits

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why did Robin Hood raise additional capital?

To offer more services

To expand their customer base

To prepare for future unexpected events

To meet immediate deposit requirements