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.
Vinay Gupta is asking fundamental questions.
ReplyDeleteThe 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.