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Robinhood S-1 [Video]

Robinhood S-1

The trading app Robinhood is going public, and filed its S-1 with the SEC.

Here’s what I learned from their disclosures:
• Robinhood has 18 million funded accounts and $81 billion of assets under its custody
• It plans to trade under the ticker, “HOOD”
• It’s going to reserve between 20 and 35% of its Class A shares for Robinhood customers

Robinhood has 3 classes of stock:
• Class A shares (1 vote each). This is the stock being offered in the IPO
• Class B shares (10 votes each). This is held by the two founders of Robinhood
• Class C shares (no voting rights)

Robinhood pioneered commission-free trading, so you might be wondering how it makes money. Robinhood has 3 sources of revenue:
1. Transaction-based revenues
2. Net interest revenues
3. Other revenues

81% of total revenue in the first quarter of 2021 came from transaction-based revenues.

This is revenue “earned from routing customer orders for options, equities and cryptocurrencies to market makers.”
• When a user buys or sells a stock, Robinhood needs to route the order to a market maker who will execute the order. The market maker then pays Robinhood a portion of the bid-ask spread. In short, the market maker is paying Robinhood for sending trades their way
• The market maker Robinhood used the most was Citadel Securities, which accounted for about one-third of Robinhood’s transaction-based revenues
• When it comes to trading stocks/options, these fees are called “payment for order flow”
• When it comes to trading cryptocurrencies, these fees are called “transaction rebates”

About 12% of Robinhood’s total revenue came from interest in the first quarter of 2021.
• Robinhood earns interest on margin loans, securities lending, and deposits

The remaining 7% of Robinhood’s total revenue came primarily from Robinhood Gold, a paid subscription service that gives users access to premium features.

In total, Robinhood generated $137 of revenue per user in the first quarter of 2021
• That’s a 65% increase from the same quarter in 2020
• And Robinhood’s top-line revenue quadrupled over the same time period

But is Robinhood profitable?
• Well, it posted a $7 million profit for the 2020 fiscal year
• But it lost $1.4 billion during the first quarter of 2021

The loss was due to a single line item: a $1.5 billion expense due to a fair value adjustment of convertible notes and warranty liabilities.

If you ignore the fair value adjustment, Robinhood about broke even in the first quarter of 2021.

But because Robinhood has had such strong top-line revenue growth, a lot of investors are excited about its stock.

But the company faces multiple risks, including:
1. Regulation
2. Increased competition
3. Conflicts of interest due to its business model

Robinhood benefited greatly from COVID-19, the stay-at-home orders, and government stimulus payments that gave retail investors extra money to put in the market.

But it’ll be interesting to see if Robinhood’s business model can achieve high profits in the long run.

Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD.
Edspira’s mission is to make a high-quality business education accessible to all people.

SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS
* http://eepurl.com/dIaa5z

LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc
* Website: https://www.edspira.com/podcast-2/

CONNECT WITH EDSPIRA
* Website: https://www.edspira.com
* Blog: https://www.edspira.com/blog/
* Facebook page: https://www.facebook.com/Edspira
* Facebook group: https://www.facebook.com/groups/561316587899818//
* Reddit: https://www.reddit.com/r/edspira
* LinkedIn: https://www.linkedin.com/company/edspira

CONNECT WITH MICHAEL
* Website: http://www.MichaelMcLaughlin.com
* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin
* Twitter: https://www.twitter.com/Prof_McLaughlin
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*TikTok: https://www.tiktok.com/@prof_mclaughlin

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Resources for Accountants

3 Theories Explaining the Shape of the Yield Curve [Video]

There are three theories to explain the shape of the yield curve. Expectation theory says the long-term yield of a financial instrument is the average of the short-term yields that are expected to occur over the life of the instrument. Thus: • An upward yield curve means investors expect short-term yields to rise in the future • A downward yield curve means investors expect short-term yields to decline in the futureThe yield curve, therefore, changes as investors’ expectations about future short-term yields change. This explains why yields with different maturities tend to move together. Market segmentation theory says that yields for different terms are based on supply and demand. In short, some investors have a preference for financial instruments with a certain maturity, and these preferences determine yields. The downside of market segmentation theory is that it fails to explain why yields with different maturities tend to move together.Liquidity premium theory is a combination of expectations theory and market segmentation theory. According to this theory, the long-term yield is the average of short-term yields throughout the life of the bond plus a liquidity premium that represents the supply and demand for bonds at that term.— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people. — SUBSCRIBE FOR FREE PDF GUIDES TO THE FINANCIAL STATEMENTS, MANAGERIAL ACCOUNTING, TAX, AND MORE* http://eepurl.com/dIaa5z — HIRE MICHAEL MCLAUGHLIN, PHD, CPA* https://michaelmclaughlin.com/hire-me— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT* https://edspira.thinkific.com—LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/—GET TAX TIPS ON TIKTOK* https://www.tiktok.com/@prof_mclaughlin—ACCESS INDEX OF VIDEOS* https://www.edspira.com/index—CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira* Instagram: https://www.instagram.com/edspiradotcom* LinkedIn: https://www.linkedin.com/company/edspira—CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin—ABOUT EDSPIRA AND ITS CREATOR* https://www.edspira.com/about/

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Resources for Accountants

Accounting Jobs At Amazon | Job Duties, Qualifications & Salaries [Video]

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All of the Balance Sheet Ratios for Financial Analysts [Video]

Over the last year I’ve made multiple videos talking about how to measure balance sheet KPIs or we also refer to them as financial ratios.And today I wanted to put these all together in one video, so you can come out of it feeling super confident in your ability not only to calculate these rations, but more importantly how to read and interpret them📈Get My “Controller KPI Dashboard” (Excel + Course) with the most important P&L and Balance Sheet KPIs:​https://thefincontroller.com/p/controller-kpi-dashboard-one-kpi-dashboard-to-run-a-business​📈 Get $25 off MY ONLINE COURSE ON FINANCIAL METRICS (code: Save25)https://thefincontroller.com/p/learn-financial-metrics-kpis/?product_id=2659754&coupon_code=SAVE25&preview=logged_out🔥Enroll in my online course “Night Before the Accounting Interview Guide” including All Levels Q&A🔥:https://thefincontroller.com/p/the-night-before-your-accounting-interview-course-for-all-levels------------------------------------------------------------------⚪️ 🧠 Roger CPA Review Course (get 50% off - Highly recommended): https://www.uworld.com/productreferral.aspx?ukey=8lzsxx2bT8qzYRxekeTKyWQ3d3d⚪️ 📚 Learning//SkillShare (get 2 weeks free): https://www.skillshare.com/r/profile/Bill-Hanna/7521537---------------------------------------------------------------------Hang Out with me on social media:📸 https://www.instagram.com/the_financial_controller/📱https://www.tiktok.com/@thefinancialcontroller🙋🏼‍♂️https://www.facebook.com/groups/780732429036886/?source_id=101273467885666DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!All views expressed on my channel are mine alone. Not intended as financial or professional advice

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Resources for Accountants

Introduction to Venture Capital 💼🚀 | Wallstreetmojo Venture Capital Series [Video]

🤝 Welcome to Wallstreetmojo's new Venture Capital series! 🌟 In this introductory video, we embark on a journey to demystify the world of venture capital and its vital role in driving innovation and growth.Join us as we explore the basics of venture capital, including what it is, how it works, and why it's crucial for startups and investors alike. We'll provide a clear overview of the key concepts, terminology, and the venture capital ecosystem.Whether you're an aspiring entrepreneur, an investor, or simply curious about the venture capital landscape, this series is designed to equip you with the knowledge and insights needed to navigate this exciting field.Hit that subscribe button to stay updated on our latest videos, and let's kick off our venture capital journey together! 🚀