TradeStation SPAC Presentation Deck
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The following risk factors relate to TradeStation and its business, financial condition, results of operations and prospects, in particular in the context of TradeStation becoming a publicly-traded company as contemplated by the proposed
business combination with Quantum, as described in this presentation. Accordingly, the words "we," "our," "us" and similar terms used in these risk factors refer to TradeStation in that context.
Investing in our common stock involves a high degree of risk. You should carefully consider each of the following risk factors, as well as the other information in this presentation, before deciding whether to invest in our securities. If any of the
following risks actually occurs, our business, financial condition, results of operations and prospects could be materially adversely affected. In that event, the market price of our common stock could decline significantly and you could lose all or
part of your investment. The risks described below are not the only risks we face. Additional risks of which we are not presently aware, or that we currently believe are immaterial, could also materially adversely affect our business, financial
condition, results of operations and prospects, and the market price of our common stock could decline and you could lose part or all of your investment.
Risks Related to Our Business
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Risk Factors
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The financial projections included in this presentation represent the estimates of our management as of August 31, 2021 with respect to our potential results of operations for the periods presented and are based on a number of inputs,
estimates and assumptions, certain of which are described in this presentation. There can be no assurance that any of such projections, or the inputs, estimates or assumptions on which they are based, can or will be achieved (in whole or
in part) or that they are accurate in any respect.
Our results of operations and other operating metrics may fluctuate significantly from quarter to quarter, which could result in frequent volatility in our share price.
Our business and reputation may be harmed by changes in business, economic or political conditions or events that impact financial markets, including systemic market events or substantial or systemic regulatory events or changes.
Because a majority of our revenue is transaction-based (including brokerage commissions and fees and payment for order flow ("PFOF")), continued commission-and-fee price compression (or elimination), or reduced levels of market
trading activity, volume or volatility, or regulatory changes that limit or eliminate any of these types of revenue, may result in slower or no growth, higher account acquisition cost or reduced revenue and profitability.
Intense competition in our industry led to "zero commission" plans for retail trading transactions. Should such commission elimination in our industry increase in scope, or begin to be offered with respect to the other asset classes we
offer for trading on our platforms, such pricing pressure and any response we undertake could materially and adversely harm our ability to generate revenue.
If we are unable to manage our growth successfully, our financial performance may suffer and our brand, reputation and company may be harmed.
If we fail to retain existing customers or attract new customers in a cost-effective manner (or in general), or if our customers decrease their use of our products and services, our account and revenue growth could be slower than we
expect or negative and our business may be materially harmed.
Proposed legislation that would impose taxes on certain financial transactions could, if adopted, reduce our new account growth and account retention, client activity, trade volume and revenue (and increase our expenses).
We may require additional capital to satisfy our liquidity needs and support our business growth and objectives, and this capital might be subject to delays and other limitations imposed by applicable regulations, might not be available to
us on reasonable terms, if at all, and may result in shareholder dilution and limitations to our business and operations.
A significant portion of our revenue depends on the interest income we can earn on our customers' assets in our custody. We are therefore subject to interest rate risk and fluctuations in the market, which we do not control.
Our clearing operations expose us to liability for errors in clearing functions which could cause losses, regulatory enforcement fines and sanctions, and reputational harm.
The loss of key employees could decrease the quality of our management and operations.View entire presentation