Robinhood’s plan to open financial markets to the masses

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Robinhood’s plan to open financial markets to the masses


While most were following the closure of Lehman Brothers and Bear Stearns during the 2008 financial crisis, there was another important change occurring: the rise of algorithmic trading.  Due to the inefficiency and excess of humans coordinating trades, computers began processing about 95% of the trading activity by financial institutions.  Vlad Tenev and Baiju Bhatt were working on building such automation software for banks, but wondered if there was a way to leverage this technology for the masses, not just the wealthy. This was the inspiration for launching their startup Robinhood, which utilizes automation to reduce the human labor needed…

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