Fractional Shares Introduction

Requirements Clarification & Assessment

1. Clarify the Objectives

   • Determine if the focus is on a full product launch or a test launch.
   • Identify Robinhood's strategic objectives for the fractional shares initiative (e.g., user growth, increased engagement, revenue generation).

2. Understand the Business Model

   • Revenue streams: trading volume, customer portfolio, interest on non-invested funds.
   • How fractional shares fit into these streams.

3. Define User Segments

   • New users vs. existing users.
   • Users with different trading behaviors and asset levels.

4. Determine Metrics of Success

   • Acquisition: number of new users through fractional trading.
   • Engagement: increased trading volume and app usage.
   • Retention: reduced churn rates among new users.

5. Identify Constraints and Assumptions

   • Technological limitations or user interface changes.
   • Assumptions about user behavior and market conditions.

6. Clarify Measurement and Evaluation Methods

   • A/B testing feasibility.
   • Alternative causal inference techniques if A/B testing isn't possible.

7. Potential Risks and Challenges

   • Cannibalization of existing products.
   • User confusion or dissatisfaction.
   • Market volatility affecting results.