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IT and Finance are completely different fields with very different rules. One can't simply apply one's understanding of one field to the other (which, sadly, se
by ucaetano 8y ago
IT and Finance are completely different fields with very different rules. One can't simply apply one's understanding of one field to the other (which, sadly, seems to be the rule on HN).
- mmsimanga 8y agoI am genuinely interested, would you mind explaining why the rules are different? Should they be different?
- ucaetano 8y agoThe first reason why rules are different is because in one case (IT) you're dealing with a seller-customer relationship, and in the second (Finance) you're dealing with a investor-company relationship. Second, public equity markets are a heavily regulated environment, for many reasons, and require strict rules to function to avoid widespread fraud, market manipulation, insider trading, etc. This is similar to Healthcare as well. You can't just go selling a random untested drug claiming that it cures cancer. And they should be different because of different configurations of power and impact. Investing isn't just buying a product or a service, it is allowing someone to use your money freely within certain conditions.
- mmsimanga 8y agoI agree when IT is viewed as seller-customer. However, in many corporations whose primary business is not IT, IT is the enabler. In the same way, a mining company will invest in big earth moving machines, knowledge companies such as insurance companies and even retail companies build or buy IT solutions to gain efficiencies in their business. The IT system does, in fact, have an impact on the profitability of the company.
- ucaetano 8y agoSure, but it is just a product or service being provided, which is different from an investment mechanism. It isn't just because you can create an analogy between two things that they are the same.