You have been hired as a regulatory analyst fora fintech start-up that has developed a new stock-trading app, Stockz, which is designed to appeal to Gen-Z.The engineers have designed the app to be fun to use and as addictive as a video game. Stockz's users do not pay for the service.The app's revenue comes from high frequency trading firms who pay for the ability to executeStockz's users' orders.

1. Your first assignment is to assessStockz's regulatory risks based on its business model. Identify any facts that give rise to regulatory concerns, identify the applicable laws or regulations, apply the laws or regulations to the facts, and determine whetherStockz practices could be problematic. If so, what steps should be taken to mitigate the risks?

Identify Facts:

Rule(s):

Application:

Conclusion: