The trouble with questions about stock markets is the informed answer too often is: "It's anyone's guess." So nobody seems really sure how much of the market is high frequency trading. But everyone seems to agree that a lot is. And yet news of stocks is never reported that way. The pretense is that stock holders are owners. What does it mean to own a stock for 11 seconds or 20 seconds?
Clearly there's a subsidy, but I'm not holding my breathe that might soon change. But asking the question itself rocks the boat of conventional wisdom about ownership.
1 comment:
Vinay Gupta is asking fundamental questions.
The trouble with questions about stock markets is the informed answer too often is: "It's anyone's guess." So nobody seems really sure how much of the market is high frequency trading. But everyone seems to agree that a lot is. And yet news of stocks is never reported that way. The pretense is that stock holders are owners. What does it mean to own a stock for 11 seconds or 20 seconds?
Clearly there's a subsidy, but I'm not holding my breathe that might soon change. But asking the question itself rocks the boat of conventional wisdom about ownership.
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