INEG Questions

Movies Wall Street

1. What are the criminal behaviors in both films?

In the film I could find two behaviors or criminal acts one by Bud, where he has
information about the Blue Star airline, where his father worked, which is revealed to
Gekko, and also revealed different information from other companies , which would
cause the mass dismissal of all its employees, including that of its own father.

Another criminal behavior occurred on the part of Gekko, since I take advantage of the
information that Bud offered him, to have profit he wanted to inflate the value of the
shares, that is, each share was going to be overvalued as opposed to its value that
was lower in the registries, this so that the buyers of shares trusted that the airline
company would rebound within its market and also bought shares, and that it was as
soon as possible since they were in each moment at a higher value. Thus, Gekko
favored the transaction, earning millions.

2. In the world of economics every criminal action should be punished?

I believe that if in the world of economics, any criminal activity or action should be
punished by law regardless of how it is granted. Although I believe that if it is some
action for the benefit of the economy and not own, it should be analyzed in order not to
be punished.

3. What are the good things you can find in both movies?

In the movie I could see great lessons that I felt very good, I wanted to use them in the
future, I want to name three of them. The magnate Gordon Gekko, offers a great
lesson, indicating that Greed in men is good , this I could understand better as the
hunger to overcome, to have wealth, respect, etc. Many humble people are those who
become great millionaires thanks to that hunger for recognition, and success, every fall
they have in their lives, every stumble, every failure the only thing that does is give
more strength to keep fighting.

Likewise, I also learned that actions that are related to the illegal party should not be
carried out, since any action brings with it a reaction. Economic progress should be
evident in the long term and not shortly as many think, because only with effort,
discipline and planning, the proposed goals are achieved.

There are apparently very lucrative illegals, but sooner or later these will end up ruining
us.

Another lesson from Gekko always wake up early and get up early to what happens in
the financial markets Gekko speaks at dawn just dawn from the beach to Bud which is
still sleeping, waking up with the call of Gekko, warns about the current situation in the
market reminds you that money never sleeps, can be with you one night and leave you
the next day if you're not smart enough to know how to handle it, inexperienced Bud
barely notices what is happening in the markets and acts late learning a valuable
lesson .
 4. How can you describe the personality of the main characters in every
movie?

Gordon Gekko

Represents the excessive ambition, an intelligent, astuto, clever in everything to

finance, but also calculating, manipulative, unscrupulous and willing to everything to
get what you want, having managed to build an extraordinary financial empire based
on your own capabilities.

Bud Fox

He is a young and ambitious stockbroker, a disloyal person since he got to the point of
betraying the company in which he worked, revealing confidential information. On the
other hand it should be noted that he was an honest man, recognizing that he had
made a mistake and in turn helping to unmask Gekko.

5. Is there any similar case here Colombia that you can compare with the
films?

Similar case here in Colombia, I think not, but it should also be mentioned that there
have been cases in which information about companies is revealed to the benefit of
competing companies, by employees.

Robinhood

1. Who are the creators of Robinhood?

The firm was founded by Vladimir Tenev and Baiju Bhatt who had previously built high-
frequency trading platforms for financial institutions in New York City. Tenev and Bhatt
realized that high-frequency traders and electronic trading firms pay effectively nothing
to execute trades. This inspired Tenev and Bhatt to bring existing technology to the
retail brokerage market with Robinhood, a commission free stock brokerage. As of
March 2016, it had nearly one million customers. 2014 fund.

2. How Robinhood market makes profit?

The RobinHood market gains profits by offering to marketing margin and access to the
application programming interface (API) that allows users to create applications
associated with RobinHood. On the other hand, RobinHood will also charge for
providing certain volume in specific markets, as well as offering a premium payment
service for certain investors.

The application offers a premium service ("Robinhood Gold") with a cost of between
USD 6 and USD 200 per month and that allows you to instantly dispose of the funds
after making a deposit or having sold an action or the possibility of operating leveraged,
between other functions Additionally, the firm has other sources to obtain income
 3. Do you think is possible to have and app like robinhood here in Colombia?
Why?

Of If possible yes it is, but I think it is not the most appropriate since the Colombian
stock market is very small, and I think the costs are high in general.

4. Why is robinhood so successful?

I consider that robinhood is so successful because they allow users to be able to use it
easily and easily, for example, it allows you to scroll down to obtain more detailed news
and statistics. With no fees or commissions, the application is designed to help
potential investors make a first purchase and gain experience in the markets.

5. What are the pros and cons of robinhood?

PROS of Robinhood:

1. $ 0 Commission The obvious reason why people have been using this platform
WITHOUT cost to do business with Robinhood. Great if you ask us. For the
young investor who does not win / has a large cash flow to make large
purchases, this is very intriguing. Example: If you have $ 35 and want to buy an
AT & T (T) or $ 28 share and want to buy a KMI share, you can buy them and
not worry about your transaction expense or% share ratio when you do a trade.
This is something that we always keep in mind with our broker, since $ 6.95 an
operation at $ 1,000 is essentially a commission of 0.695%. Here, 0% rate, a
great professional.
2. Friendly application: the application is elegant. Without exception. The
technology-based company really did well here, which facilitates its flow, makes
a transaction, checks the highs / lows and the proportions before making the
exchange. The security of the application is high in this and makes use of the
fingerprint reader to access from the Apple phone. In addition, it seems to be
very, very easy to control the market, create watch lists, etc.
3. Types of main orders: it has its main types of orders: Market, Limit, Stop-loss
and Stop-Limit. This can be a disadvantage depending on how complex the
investor is. We consider this a benefit here due to the reduction in the number
of transactions to choose from, at this time, without limiting the basic investment
options offered by other brokers. This would be considered a professional for a
basic / initial dividend growth investor.
4. Pay for things. What do I mean (Lanny) with this? Well, if you are an investor
who normally makes transactions, let's say twice a month at $ 7.00 (rounded
up) in each operation. That's $ 14 / month for marketing commissions X 12
months = $ 168 per year that Robinhood could save you. Now I (Lanny) have
transacted 21 times this year through my brokerage service at $ 6.95 each time.
That's a cost to me of $ 146 (rounded) already! Since I still have 2+ months left,
it seems I'm on track to spend between $ 160 and $ 200 in fees. Think about
what you could spend or the typical monthly expenses you could cover with the
extra money. Basically it can be a tablet for $ 300 and then negotiate for a year
in robinhood and this would pay for virtually that device. Makes sense? Or if you
update your phone for $ 200, the use of this application would pay for it. It is
interesting when you view transaction fees from a different goal.
5. Allows investors to diversify without buying a mutual fund or ETF: this is an
additional benefit only available due to Pro # 1. Think how many times you have
found yourself in a situation where you have limited capital and want to buy
multiple shares that are being negotiated with a discount. For example, if I
 (Bert) had $ 500 and suddenly I saw a slowdown in the market. I could buy the
five stocks on my "Always buy" list for $ 100 without having to incur excessive
commercial rates ($ 6.95 * 5 = $ 35.95 if I changed through a different broker). If
there were commissions, there is no way to buy the five shares and most likely
opt for one. The $ 0 commission would allow investors to distribute their money
and diversify their portfolios through smaller purchases without being penalized.
Now, an investor with $ 1,000 can own a portfolio as diversified as an individual
investor that has an investor of $ 100,000.

CONS of Robinhood:

1. No dividend reinvestment plan (DRIP): as dividend investors, one would

love to have the DRIP function so as not to worry about reinvestment or wait
until the cash accumulates enough to buy a total stake. As of now,
Robinhood does not have a DRIP function and, therefore, if it earns $ 2.00
in dividends, it will accumulate in cash until it has capital to buy a full share.
2. Without retirement accounts: as dividends and regular investors, one would
love to have this feature to bring all accounts to Robinhood. Essentially, if
you had to use this and you wanted a retirement account, you should have
several brokers in use. At this time, everyone has 3 at this time - 1 for work -
1 old ROTH and our current Individual / Roth accounts through the same
runner and it is not very fun (Yes, we both have the same design). Checking
several sources can be cumbersome and time-consuming, which can be a
great advantage for some of us since we balance a full-time job, blogs and
life.
3. Limited Trade options As discussed in the pro section above you do
not have the ability to trade options, foreign domiciled securities or mutual
funds. I do own one ETF and not being able to invest into a fund could turn
people off.