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The stock market is well regulated but the bond markets a lot less so, hence that's where Wall Street makes big profits (when times are good.) They make serious
by patrickk 16y ago
The stock market is well regulated but the bond markets a lot less so, hence that's where Wall Street makes big profits (when times are good.) They make serious profits as 'market makers' (standing between buyers and sellers) with bonds.
- grandalf 16y agoYou view the bid/ask spread as an indicator of poor regulation? Not actually true. The spread reflects the willingness of firms to compete as market makers. More firms competing means a smaller spread. The spread also reflects the risk associated with the market maker holding inventory. The more perceived risk, the bigger the spread.