Business 123 Introduction to Investments May I please have an explanation for the following problem? Thank you A friend of yours learns that you are taking BUS-123, Introduction to Investments. He tells you that he has been trading using Robinhood. He makes several trades each week. He says that there are no commissions so he can make as many free trades as he wants since there are no transaction costs. He asks for your opinion. What can you tell him about Robinhood and commission-free trades? Is he really not paying anything to trade stocks?

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
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Business 123 Introduction to Investments

May I please have an explanation for the following problem?

Thank you

A friend of yours learns that you are taking BUS-123, Introduction to Investments. He tells you that he has been trading using Robinhood. He makes several trades each week. He says that there are no commissions so he can make as many free trades as he wants since there are no transaction costs. He asks for your opinion. What can you tell him about Robinhood and commission-free trades? Is he really not paying anything to trade stocks? 

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