Skip to main
  1. Public Live
  2. Alternative Assets
  3. Alts: Sports Memorabilia 101
Alts: Sports Memorabilia 101

Alts: Sports Memorabilia 101

Sports memorabilia expert talks MJ game-worn sneakers, NFTs, and more.

Alts: Sports Memorabilia 101
Invest in stocks, ETFs, cryptos, alts, and more. Listen to daily audio shows on market news & trends.
Sign up
Aired Jun 09, 2022
In this episode, Calum Johnson is joined by sports memorabilia expert and co-founder of Sports Authority Authentication Services (SAAS), Gerard Starkey. Together, they demystify the category, provi...

Calum Johnson: Hello, everyone. Welcome to Alts, the show on Public all about alternative investing and emerging trends happening at the intersection of culture trend investing. I'm your host Calum Johnson from the Alts team. Today, we are joined by Gerard Starkey, sports memorabilia expert, and co-founder of SAAS. Over the last 20 years, Gerard has built one of the most valuable and complete Michael Jordan player exclusive game worn collections in the world, and has been featured in Highsnobiety and elsewhere, as one of the preeminent MJ collectors. Sports memorabilia is a really exciting alts category, and he'll be demystifying it for us today.


Before we get to that, though, we're going to cover some of the biggest headlines happening in the world of alts in a section I like to call five and five, five headlines in five minutes. Let's get started. So first of all, Nike sold a virtual NFT sneaker designed by artists to Kashi American army for $134,000. The sneaker was one of 20,000 in Nike;s first release with artifact in April. Collectors are hoping the shoes will become part of games like fortnight and Grand Theft Auto Six, while others are interested in physical versions of the shoes.


eBay is launching its first ever NFT collection. Thirteen limited edition NFTs that feature 3D animations of hockey legend Wayne Gretzky making one of his signature moves. They plan to drop additional NFT collections throughout the year in partnership with web3 platform OneOf.


The world's largest bottle of whiskey was sold for $1.4 million by auction house, Lyon and Turnbull on May 25. The bottle stands at an incredible 5’11 and was given a Guinness world record for being the world's largest bottle of whiskey in September 2021. It contains enough to fill about 444 standard bottles, or enough to make 5,287 whiskey sours, which is pretty crazy.


New York based real estate, investment and brokerage firm Acada listed a New York building as an NFT on OpenSea for 15,000 ETH, approximately $27 million. The NFT represents ownership of the building. However, the buyer still has to follow standard real estate procedure offline for the transaction to go through. 

Finally, a former OpenSea employee has been indicted in the first ever case of NFT insider trading. Thirty-one year old former Product Manager Nathaniel Chastain was responsible for selecting which NFTS would be displayed on OpenSea’s homepage. He would then use that information to buy those NFTs before they were featured, and then flip them for 2-5x profits after that. So that's our five and five for today. We're now going to switch over to speaking with our guest Gerard Starkey. Gerard, welcome to the show. It's a pleasure to have you on.

Gerard Starkey: Thanks for having me on. It's a pleasure.


Calum Johnson: Okay, awesome. I'm super excited for this one. So just to begin, can you give us a backstory? I think you have like the most valuable MJ game on collection out there. Can you kind of just give us an intro into how you got into collecting these items? 

Gerard Starkey: I think first just to correct slightly, at one point in time, I was definitely the most valuable Michael Jordan collector, but in the recent in recent years, some very, very large investors have come in and bought up, you know, millions of millions of dollars of items in a very short span of time. So I'm definitely up there in the top two or three guys, but I'm possibly not the most valuable at this stage. But I was at one point.

Calum Johnson: Okay, you're in the conversation for sure.


Gerard Starkey: Yeah, I'm definitely up there. But I don't want to claim the crown without giving my peers and fellow collectors, you know, the same type of esteem all the way up at the top there. For me it started before value was even a concern because for me it started out of pure passion as a teenager. And as you said earlier on, I've been collecting for about 25+ years. And I didn't necessarily start in Michael Jordan stuff. Specifically like stuff he'd actually used. It actually started just in the kind of the regular kind of original Jordans that were available at the time and and gradually progressed through the various kind of categories of collecting whether it was like originals, hard to get rare samples, back to originals again, and then the original market. 

Original releases of the Jordan shoes where it was very hot in late 90s, early 2000s, like it was, it just increased massively. And I actually was given a pair of game-worn Jordans from an ESPN athlete, I can go into that story at some point, but I was given them by an ESPN, so a cameraman, who was French. And when, as soon as I held that asset, the asset that I previously owned at the time, but that I previously collected didn't mean as much to me, because I had this asset that, you know, represented this athlete. And at that point, I took the opportunity to sell all my originals, which I sold very quickly. And I basically plugged it all into actual game news items. And now that was not as easy to find, but I'm quite resourceful. I speak seven or eight languages. 


So I basically went into the market on a global scale and just bought everything I could. And this went on for about 1015 years before the real boom happened, and I did it quite silently, because that was just my strategy, not quite being quite a competitive person. And being well, I was based in London, most of that time. So all of my peers were in Asia and the States. So for me to get stuff, I have to really hustle and bustle and just just grab as much as I could. And yeah, to this day, I don't sell my own collection, I just vault stuff and enjoy it and have it on display at my home and rotate it and collect things. I still obviously enjoy collecting. But you know, it's much harder now because the caliber of items I want to collect it's large sums of money. And I have to be quite selective, to be honest. Because I can't compete with all the bigger players in the current market. However, I obviously have a number of assets that these guys want. So the only way for me to really get into some of the really big, multimillion dollar items is to trade out.


That's my collecting career in a nutshell and now I've built up so much expertise in the space that you know, I dibble and dabble in helping the Jordan Brand, do marketing campaigns. I am an adviser to big collectors around the world, helping them build up their collections. I do storytelling in displays around the world with various clients and partners. And I've got my own authentication company SAAS where, just like Public's doing, my main goal is to educate so that people can understand the assets, appreciate the assets, and get a really good sense of the value of the assets, because I think that's quite important. I think that is going to be the key element of this particular space, and actually any collecting space is going to focus on in the next sort of three to five years. It's all going to be about really getting specific, really getting clear valuations of stocks. At the moment, I think things are still bouncing around. But we'll get into that as we go through the question. So that's me and my collection, career from start to end and looking forward.

Calum Johnson: Okay, sweet as you were saying that I was like, Gerard is living the dream, like the dream of any NBA fan, Michael Jordan fan. He is living it.


I wanted to ask you because I think this is really interesting, and also just to give people in the audience a bit more context. Can you talk us through some of like those highlight pieces, those assets that are currently in your collection? Maybe like two or three of your favorite ones? And then also take us through like, how did you even get it? Maybe you can give us like a quick story of an interesting acquisition story.

Gerard Starkey: Okay, I think probably the asset that I own, the pair of shoes I own that people will most likely recognize, is that I own The Shot. So I own the Black Cement Jordan 4s that Michael Jordan wore when he hit the shot over Craig Ehlo of the Cavs. And that for me is definitely in terms of emotional value an asset that captures a really big turning point not just in Michael Jordan's career but in the whole basketball, NBA kind of history. It's, in my opinion, its top three, possibly top one or two moments ever. So that's definitely, in my opinion, the biggest asset that people will really appreciate, I think on a global scale without question.


I own obscure pieces like the Nike Alpha Force that Michael Jordan wore in the same kind of period, as he was wearing Jordan, threes and fours and he was trying to, you know, get comfortable in the shoes. There's some talk about him, it being a transition point, as am I going to stick with Jordan, they're trying different midsole shoes models, and he actually started wearing Nike Alpha force, which isn't the Jordan shoe. But he wore them two or three times, and I have the pair that he played in against the Milwaukee Bucks. So that's a cool, very unique piece, not as big a celebrity as The Shot. But definitely for me, it's a piece that I appreciate a lot.


And then you're seeing other other shoes that I would love to have in my collection that have eluded me. I mean, the obvious one, for me is the last shot, which is Michael Jordan's final pair of shoes, which, I mean, I've literally searched for, I mean, I'm a resourceful man. And I've searched for it far and wide. And I mean, there's two pairs out there. And one of them potentially, is that model. But there's also a possibility that Michael Jordan has kept that one himself, which would make sense to me. But it's just not a pair that I've ever been able to acquire. But that would be monumental. And I mean, the closest pair I've seen to that very last pair is actually up at Christie's actually, it's an auction I've held here, the shameless plug, but there is an amazing, low 13 game-worn Michael Jordan sample that's actually on the market as we speak. And that's pretty much as close as I think any of us will get to that last shot ever. And that's, that's an amazing piece.

Calum Johnson: When you even think to yourself, “I would love to own the last shot piece” or “ the last shot sneaker,” how does that process of even trying to track it down start? Is it all just personal connections? What's that research process?

Gerard Starkey: Yeah, it's, I mean, my process is I mean, everybody knows I'm an actuary by profession. So my mind is quite analytical, I love a good spreadsheet. I love a good list. So over the years, I've basically built databases of you know, where these assets are, whether it's jerseys, shoes, bats, helmets, you know, not necessarily specific to Michael Jordan, but where big assets are, who owns them, you know, their numbers, their emails, some photos of those assets, the tagging just so I can keep myself fully educated as to you know, the authenticity and what I should be looking for. 

I do actually have big personal databases that you know, are super valuable to me and help me try to track these things down. And once you get into the circle you know, you do meet insiders, insiders to these athletes, these these these gods so to say, of the world and you can navigate through, there is a there's a way to navigate through that community and figure out how to get out get out assets once you do a deal. Whenever I do deals in the past, it was never you were never buying one item. It wasn't efficient, you were potentially having to get on a plane and travel to Hong Kong or New York and as I said I was based in London in Europe most of the time. So if I was going in, I was going for the kill and I was going to buy as much as I could, you know? And when you get known to be a reliable person who does deals who buys stuff off the medics, the teammates, the ball boys, you know, use that they pass your lap around respectfully and they and you can you know pay the right money for the assets. And at the time it was much simpler like I said they were trying to get rid of assets anonymously without you going to the market. You know, there wasn't really a deep liquid market for them at that point. They also didn't want to be known to be selling the asset that Michael Jordan gave them, so it was much easier. But that's how I go about it and I apply the same technique. Circle still exists, you know, there are other layers, there are more auction houses, there are more dealers, there are more middlemen, but it's just navigating the space. Like any space just like buying a house or a property, it's very similar actually.

Calum Johnson: Okay, awesome. I want to zoom out a little bit. I know, there's probably a lot of people in the audience who are interested in potentially investing in sports memorabilia, and just learning more about the market in general, could you kind of just quickly define for us, what exactly is the sports memorabilia market, and then what makes this category special?

Gerard Starkey: Well, sports memorabilia market as an asset, if I was thinking about in a real simple kind of definition, any asset that captures an athlete, either his image or a moment, or an event in sports history. And this can be purely a photo on a card, or an actual item used at that point in time or something with a signature from that era. It's a very broad category, so it captures the essence of an athlete. 

It’s an interesting category because, I mean, for me, first, take one quick step back to make it clear what the following statement means, to me, it's like an art. These are moments that people have created at the very peak of their career. And if anybody on the call has ever, you know, going down that route of being an athlete or doing a sport, you know, it is extremely difficult to work your way up that ladder to become the top person, just like any artists would have had to work, you know, hundreds of 1000s of hours, you know, to be known as the, you know, the Michelangelo or the Picassos of the world, you know, these athletes have created these moments by being that great. So for me, they aren't just rubber and canvas and suede and leather, and you know, and wood and whatever, whatever materials they use in the equipment. They're actual moments in time that represent something very deep, very hard to achieve, and hence, they are pieces of art, which you which become talking points become storytelling points. And that's how I treat it. So to me, it's art. It's the emotional value. It's the moment, it's a historical moment in time that they capture that they represent, that gives them value.

Calum Johnson: Yeah, I think to your point, the emotional value is so strong, so strong, right? Like we remember those moments that MJ last game shot and different moments. One thing I'm interested in from the investor perspective, is what are some of the factors, the value drivers, of a certain piece of sports memorabilia? I know you mentioned obviously, the moment, like what it's associated with, the athlete. Is there anything else? Can you kind of just elaborate on what some of those important factors are?

Gerard Starkey: I mean, those are extremely important facts that you raised. But I think rarity is key, like with any asset. And now the space is becoming much more liquid, and much more, much more educated, people really understand what rarity actually actually means. Now, for me, rarity is literally a handful, you know, and I know there are assets out there. I mean, there is an intersection between demand, and, and supply. And, you know, the perfect example for me is like the card market, the sports card market, there could be 200,000 people who want this one card, and there's only 700 of them, and that seems like a very high demand ratio. And I agree, but actually, ultimate or absolute rarity, where you can have something that like two or three or no other person has, that for me is the ultimate factor. And as we get more educated, we need to know how to filter down to what that rarity actually means. So, in cards, there's, you know, there are populations, there are I mean, you have to think of what is important in the card, what is the emotional value in a card in the card mark is my interpretation. So all the basic stuff about the quality of the card, the centering of the card, you know, the edges of the card, how perfect that card is preserved, those are all very easy parameters to understand. The hard bit is actually delving down to actual rarity and the authenticity and the you know, and the meaning meaningfulness of that card.


So I think with cards, the excitement usually comes from, say, pulling a card. So being able to calculate and understand the probability of you actually pulling that card that is going to be a big factor in rarity. Which athlete it was related to, that's going to have a big big driver of value and rarity, you know, within each of those athletes, each of those athletes have one or two cards that are the cards to have actually, they probably will have one card is the card. And if it is the card that is in your basic kind of starting point, this is the card I want for Gretzky or for Mantle or for MJ. And then you have to take that particular card and then filter that particular example down into the best version of that example.


With game used stuff, it's slightly more complex because once it's far more complex, because it's there's you know, authenticating a card is quite simple, because they are just pieces of paper that capture that nostalgia, authenticating and valuing game used jerseys and shoes is there a lot more intricate details to look at tags and where and you go down this angle of the photo matching, and we'll talk about a bit more about photo matching later on. But after photo matching and understanding signatures, it then gets into this kind of moment, space. And up to that photo matching kind of factor that you're considering, the prices on these things will be kept because it's you know, it's just photo matched. And it could be, you know, just a regular season game, but it's photo match, you know, he wore it. So it's great, it's a great asset, but the price will be capped. The moment it's photo matched, but also the moment that it's photo matched to a huge or significant or turning point, then the price will just shoot up. And that's because it's rarity, meaningfulness, emotional value, and, and that's what these assets, you know, that's why those assets then sort of transition from a sports card or sports item into a piece of art and a piece of history. And I think people are getting far more educated. I mean, there are a lot of sports thinkers, kind of like myself and there's lots of people in the market who try to go out there and kind of give these parameters to people and give that kind of food for thought. So they can think about the value themselves. And it is complicated, but I do really feel that the market is getting very sophisticated. And buyers we're getting very sophisticated and very demanding. And that's right, I think, and I actually support that a lot because it gives us base credibility and value.

Calum Johnson: You know, one thing I think that's so interesting, as I was listening to you speak is that, and I think this is a great point also for our audience. As you know, they continue to learn more about alts. And I'm even on my own journey of learning more about alts. And I think every kind of alts category has its own nuances, you know, when it comes to evaluating an asset. So for instance, you gave the example of sports cards where like the grading and the condition of the card is like a huge determinant. There's different determinants when you look at things like the art market or comic book market. And then obviously, sports memorabilia. Could you just elaborate a bit more? You spoke about photo matching, can we start at the beginning? Like what is even photo matching? Can you kind of just explain that whole process, like what does it even mean?

Gerard Starkey: So photo matching - this will apply to game used stuff firstly, so you photo match game used items. And what that effectively means is that using images and video for when the asset was actually used. You're effectively able to superimpose the asset you have in your hand on top of the image, and every single crease, loose thread game used blemish, production blemish lines up so that it is absolutely conclusive that the asset you have in your head is the exact asset used by Maradonna or by you know, MJ or by David Beckham. And there is zero doubt there. I mean, it's just conclusively matched and attributed to that particular moment. And then if that moment is a big moment, then that's the next stage of kind of research and value.

 Actually, to be honest, and in my opinion, once you've got the photo matched assets, you get so far up the chain. It's the moment that really adds value. You know, and I think, and the uniqueness of that moment moment and, you know, factors that you that the asset has that relate to that moment, you know, for example, I mean, a perfect example of a photo matched asset is something that Public actually have within their portfolio is the Shattered Backboard, Air Jordan 1, which is I mean, I'm obviously biased, because, you know, I was I was involved in that particular transaction some years ago. But that asset has photos of Michael Jordan, taking off his shoes, and giving them to the other athlete. Now, that's just unheard of. And that particular nuance parameter is super important because it not only photo matches the asset to something that MJ would have worn in a big moment, but it also photo matches the backstory and the provenance. So there's, you've conclusively photo matched but also conclusively fact checked, and you have photographic evidence of the backstory and how it actually got from Michael Jordan's feet, to the open market. 

And the fact that Michael Jordan was the person handing the asset over is so significant, because usually, it would go into the admin team or his charity team, or, you know, his, you know, there would be a process because he was such a huge, huge, huge athlete, and he was huge from from day one. I mean, people knew he was a big deal from day one. So to have an asset that comes direct from him, insane. And for me, personally, I mean, if I would have value, it's way up there. It's way up there. I mean, Maradonna’s hand of God, and you know, Kobe's rookie jerseys have absolutely nothing on that particular shoe. But it requires a level of understanding and appreciation of what it actually is, you know?

Calum Johnson: Yeah, it's so interesting. I'm kind of interested to talk and like, get your opinion on what's happening in the market currently. I know, if we look at the top of the market, we saw in 2021, there was the sale of the 1984, Michael Jordan Airships, which kind of set a record at Sotheby's for over $1.4 million. What have we seen happen from that point? I know you alluded to some other things like sports memorabilia sales, just then the hand of God and different things. What are we kind of seeing in the market right now? 

Gerard Starkey: Yeah so what is happening here is that the buyers and investors in these particular assets are extremely educated and they know exactly what they need that asset to have for it to be effectively a one of one, or a really big momentous moment. So the hand of God whatever the 9.3 million for that jersey, it makes absolute sense because it doesn't matter what what you do in life or what your interest in life, you know Diego Maradonna is and we know about that moment, and it's not particularly you know, a positive you know, it is a moment that that has a lot of controversy attached to it. And that just makes it a great asset, which is why that value makes sense. And it shows you the capability of some of these assets. You know, the Kobe Bryant rookie jersey is the one that sold for 3.6 and one that sold for 2.6, 2.7 photo matched rookie moment, rookie Jersey, obviously the passing of Kobe has helped those jerseys as well, rest in peace. But it just shows you that people really know what they want, it has to have every single parameter. If you had a photo of I mean, the Hodges who got the jersey from Maradonna is obviously proof a very good provenance, but there's no photo of Diego Maradonna giving the jersey to him, but it's obviously that the exact jersey because it's photo matched, and it was a very easy photo match and a great photo match. But it was such a unique moment. It was easy, but had Diego Maradonna signed that jersey or if there was an image of him, not being able to really speak English and Hodges saying hey, pointing Give me your jersey if that was documented it would be even more valuable. Similar to the Kobe jerseys, if there were other attributes that made it more unique, and that made the story more clear, the value just goes up, you know.


I think what's going on the market is people are really buying meaningful stuff. I mean, I can speak more. I think my knowledge is definitely more expert on the memorabilia side. And as a game used memorabilia side, and I think that's what's happening there. And in my view on the card market, is that people are getting more educated on what actual rarity is. And, you know, I think, game used, and cards, there's definitely a vintage, historic and kind of modern market. As always, with cards, I do just think, by default, the vintage market will always be more valuable. But obviously, as time surpasses, you know, the new market becomes vintage, and it will gradually grow. But there are giants in the sports world, and they've been the same giants for many, many years, even with, you know, Kobe Bryant is a good example. And I think, as I said, that's why I said his passing has added value to those particular jerseys. 

But the Michael Jordan, rookie jersey, you know, if there was a photo match one it would be significantly more valuable than that. And I think a lot of the collectors in the sports space would agree to that. I know Michael Jordan is still alive, but he's not going to create any more of those moments. I mean, I've seen, I've recently seen an amazing asset, which I can't wait until it comes to the market, but I've seen his playoff, his first playoff rookie shoes. And it's a really great photo match. And if, you know, if a Kobe Jersey sells for $3.6 million, I can see when a shoe like that comes to market or just explode that particular value, because it's such an iconic shoe. And it's his very first playoff and it was used in like two or three of the game. So yeah, I think people want the big pieces, the big investment, the big pieces, this is helping the medium and lower side of the market. But I do think that side of the market will stabilize a bit more, and the value will be very clear to everybody. But yeah, so I think what's going on, I think education is going to be key in terms of estimating the values.

Calum Johnson: Yeah, awesome. Okay, cool. I'm going to ask you one more quick question, because I know that we're running over. And I think I think it's such a great point that you make about education. And it's great to hear that, like, as the market is maturing that people, you know, they're getting more educated, they're getting more knowledgeable about these assets. And it's such a great time for the public, for our audience to then kind of come into these categories as well. 

My final question for you was, you spoke about Maradonna, Kobe Bryant, Michael Jordan. These are obviously like Pantheon all time, great athletes, right? When you look at the current kind of crop of athletes who are playing now, are there any that you look at and you think, once they're kind of game used, game worn memorabilia kind of gets out there in the future, it could rival in terms of the sale price? It could kind of rival what we've seen with like, the MJ assets or the Kobe assets or the marathoner assets. Are there any kind of athletes that you look at that will do that?,

Gerard Starkey: Yeah I definitely think they have potential to get up there. This is the will in the basketball world. The Lukas and the Steph Currys, they will get up there. The one thing I will say for the modern athletes, basketball and other sports, is that their game-issued items are much more abundant. So they will be just a much larger supply that also applies to cards as well as a huge supply of modern cards. I do think they can get up there but they literally have to check every single box it would have to be highest scoring game, best playoff run you know you won't really have many multi game worn stuff because of the abundance of the jerseys and stuff for example, but yeah there are definitely are players that will get up there in basketball and football I'm trying to think. Well obviously the Nemars and Mbappes of the world will get up there because there's a direct link there to the Messies and the Ronaldos and the Van Bastens of the world. 

But I think more of what would be the thing to look out for is the gods of the other sports where less focus is currently on at the moment. Those are the ones that will come up I think. I mean, I do honestly think basketball will always be Michael Jordan and then the Kobes and LeBrons and the other greats. Boxing will always be, you know, Mike Tyson. You know, the F1 Racing market will always be Schumacher. You know, Lewis Hamilton and Verstappen will be up there, you know, but everybody's going to want to go back to Schumacher. But I think with education and people understanding all the parameters that they're interested in and getting that real one of one meaningful moment, those will be the athletes we need to look out for that will just jump up there. So not necessarily specifically.. well, obviously, they have to be very good athletes in whatever sport they play, but it will be that one of one, this really unique story that makes them valuable.

Calum Johnson: Super, super insightful. Thank you so much, Gerard, for joining us today. Thanks to the audience. Yeah, it's been great to have everyone on and we will see you on the next episode of alts. Thanks.


Gerard Starkey: Thank you. 

Hosts
In this episode
Disclosures
Products
Contact Us
Check the background of this firm on FINRA’s BrokerCheck.

© Copyright 2024 Public Holdings, Inc. All Rights Reserved.

Market data powered by Xignite.

All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Product offerings and availability vary based on jurisdiction.

Stocks, ETFs, Options, Bonds.
Self-directed brokerage accounts and brokerage services for US-listed, registered securities, options, and Bonds, except for treasury securities offered through Jiko Securities, Inc., are offered to self-directed customers by Open to the Public Investing, Inc. (“Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Public Investing is not registered. Securities products offered by Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.

Options.
Certain requirements must be met in order to trade options. Options can be risky and are not suitable for all investors. Options transactions are often complex, and investors can rapidly lose the entire amount of their investment or more in a short period of time. Investors should consider their investment objectives and risks carefully before investing in options. Refer to the Characteristics and Risks of Standardized Options before considering any options transaction. Supporting documentation for any claims, if applicable, will be furnished upon request. Tax considerations with options transactions are unique and investors considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy.

Options Order Flow Rebate.
If you are enrolled in our Options Order Flow Rebate Program, Public Investing will share 50% of our estimated order flow revenue for each completed options trade as a rebate to help reduce your trading costs. The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.

Bonds.
“Bonds” shall refer to corporate debt securities and U.S. government securities offered on the Public platform through a self-directed brokerage account held at Public Investing and custodied at Apex Clearing. For purposes of this section, Bonds exclude treasury securities held in treasury accounts with Jiko Securities, Inc. as explained under the “ Treasury Accounts” section.

Investments in Bonds are subject to various risks including risks related to interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. The value of Bonds fluctuate and any investments sold prior to maturity may result in gain or loss of principal. In general, when interest rates go up, Bond prices typically drop, and vice versa. Bonds with higher yields or offered by issuers with lower credit ratings generally carry a higher degree of risk. All fixed income securities are subject to price change and availability, and yield is subject to change. Bond ratings, if provided, are third party opinions on the overall bond's credit worthiness at the time the rating is assigned. Ratings are not recommendations to purchase, hold, or sell securities, and they do not address the market value of securities or their suitability for investment purposes.

High-Yield Cash Account.
A High-Yield Cash Account is a secondary brokerage account with Public Investing. Funds in your High-Yield Cash Account are automatically deposited into partner banks (“Partner Banks”), where that cash earns interest and is eligible for FDIC insurance. See here for a list of current Partner Banks. Your Annual Percentage Yield is variable and may change at the discretion of the Partner Banks or Public Investing. Apex Clearing and Public Investing receive administrative fees for operating this program, which reduce the amount of interest paid on swept cash. Neither Public Investing nor any of its affiliates is a bank. Learn more.

Alternative Assets.
Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933 (as amended) (“Regulation A”). This content is not investment advice. These investments are speculative, involve substantial risks (including illiquidity and loss of principal), and are not FDIC or SIPC insured. Alternative Assets purchased on the Public platform are not held in a Public Investing brokerage account and are self-custodied by the purchaser. The issuers of these securities may be an affiliate of Public Investing, and Public Investing (or an affiliate) may earn fees when you purchase or sell Alternative Assets. For more information on risks and conflicts of interest, see these disclosures. An affiliate of Public may be “testing the waters” and considering making an offering of securities under Tier 2 of Regulation A. No money or other consideration is being solicited and, if sent in response, will not be accepted. No offer to buy securities can be accepted, and no part of the purchase price can be received, until an offering statement filed with the SEC has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification by the SEC or as stated in the offering materials relating to an investment opportunity, as applicable. An indication of interest to purchase securities involves no obligation or commitment of any kind.

Cryptocurrency.
Cryptocurrency trading, execution, and custody services are provided by Bakkt Crypto Solutions, LLC (NMLS ID 1828849) (“Bakkt”). Cryptocurrency is highly speculative, involves a high degree of risk, and has the potential for loss of the entire amount of an investment. Cryptocurrencies offered by Bakkt are not securities and are not FDIC insured or protected by SIPC. Your cryptocurrency assets are held in your Bakkt account. Bakkt is a licensed virtual currency business by the New York State Department of Financial Services and a licensed money transmitter, but is not a registered broker-dealer or a FINRA member. Your Bakkt Crypto account is separate from your brokerage account with Public Investing, which holds US-listed stocks and ETFs. Please review the Risk Disclosures before trading.

Treasury Accounts.
Investing services in treasury accounts offering 6 month US Treasury Bills on the Public platform are through Jiko Securities, Inc. (“JSI”), a registered broker-dealer and member of FINRA & SIPC. See JSI’s FINRA BrokerCheck and Form CRS for further information.

JSI uses funds from your Treasury Account to purchase T-bills in increments of $100 “par value” (the T-bill’s value at maturity). T-bills are purchased at a discount to the par value and the T-bill’s yield represents the difference in price between the “par value” and the “discount price.” Aggregate funds in your Treasury Account in excess of the T-bill purchases will remain in your Treasury Account as cash. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. T-bills are subject to price change and availability - yield is subject to change. Past performance is not indicative of future performance. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. As a general rule, the price of a T-bills moves inversely to changes in interest rates. Although T-bills are considered safer than many other financial instruments, you could lose all or a part of your investment. See Jiko U.S. Treasuries Risk Disclosures for further details.

Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value.

Banking services and bank accounts are offered by Jiko Bank, a division of Mid-Central National Bank.

JSI and Jiko Bank are not affiliated with Public Holdings, Inc. (“Public”) or any of its subsidiaries. None of these entities provide legal, tax, or accounting advice. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Commission-free trading refers to $0 commissions charged on trades of US listed registered securities placed during the US Markets Regular Trading Hours in self-directed brokerage accounts offered by Public Investing. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Public’s Investing’s Fee Schedule to learn more.

Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.

Investment Plans. US members only. Investment Plans (“Plans”) shown in our marketplace are for informational purposes only and are meant as helpful starting points as you discover, research and create a Plan that meets your specific investing needs. Plans are self-directed purchases of individually-selected assets, which may include stocks, ETFs and cryptocurrency. Plans are not recommendations of a Plan overall or its individual holdings or default allocations. Plans are created using defined, objective criteria based on generally accepted investment theory; they are not based on your needs or risk profile. You are responsible for establishing and maintaining allocations among assets within your Plan. Plans involve continuous investments, regardless of market conditions. Diversification does not eliminate risk. See our Investment Plans Terms and Conditions and Sponsored Content and Conflicts of Interest Disclosure.

Market Data. Quotes and other market data for Public’s product offerings are obtained from third party sources believed to be reliable, but Public makes no representation or warranty regarding the quality, accuracy, timeliness, and/or completeness of this information. Such information is time sensitive and subject to change based on market conditions and other factors. You assume full responsibility for any trading decisions you make based upon the market data provided, and Public is not liable for any loss caused directly or indirectly by your use of such information. Market data is provided solely for informational and/or educational purposes only. It is not intended as a recommendation and does not represent a solicitation or an offer to buy or sell any particular security.