Robin Hood Stock Trading Case Study

990 Words 4 Pages
Initially, Americans found a challenge in investing in publicly listed companies. This application introduced by Robin Hood Stock Trading is one of the strategies that are being used to solve this problem, where the individuals invest without paying a commission. Before the introduction of this application, firms that existed charged a commission, which was not cost friendly to the individuals. Robin Hood Stock Trading is a profit making company that generates its revenue from interests that is re earned from the customer’s balances.
The motivation of the company to deal with the issue of charging of commissions to individuals was as a result of the need to reduce the costs involved in stock trade. The company was started using seed capital. This is capital that rotates and helps different individuals or a group of people to start up new ventures. The success of this business will ensure that its owners are able to return the capital that will then be used to benefit many other entrepreneurs.

Achievements of Robin Hood Stock Trading Achievements of an organization refer to the extent to which they meet the strategies that have been put in
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This in most cases is because of the large number of people who need the services while the company may have limited resources. “There are 90 million “millennial”–those between 18 and 29–in the U.S., Mr. Tenev said in an interview, many who feel investing was inaccessible due to fees and minimum account balances. “It’s hard to open an account with $100 and just get your feet wet. Over 80% of Robin Hood’s current customers fall in this demographic, with an average age of 26. Most fit squarely in the mobile-first, share-everything generation that Robin Hood seeks to capture by design. But the statistic that gets the company’s founders most excited is that a quarter of their user bases are first-time investors” (Huang, p

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