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You've clearly never seen a trade book. edit: With 100% less snark the trillions in the stock market is illiquid, while $15 Billion over a short period of time
by parsnips 8y ago
You've clearly never seen a trade book.
edit: With 100% less snark the trillions in the stock market is illiquid, while $15 Billion over a short period of time (as to benefit of the 5 years of growth) is not a trivial thing to accomplish without changing prices when those trades hit the books.
- throwawaymath 8y agoYou could do with a lot less condescension to be frank. I don't really understand your claim with respect to liquidity, either. Be precise. Are you talking about slippage? Do you really think someone parking billions of dollars in the market would do so without staggering it to avoid prices moving against them? It's not like he's just going to throw $15 billion into the SPX and hope the daily volume adjusts without a problem.
- jonknee 8y agoMichael Dell's fortune wouldn't change the market dynamics one bit. Apple's last buyback program was $100b, many times what Dell had and this is exclusively to purchase shares of one company in the S&P 500.
- objektif 8y agoYou clearly never vwapped.
- harryh 8y agoHundreds of billions of dollars are traded per day on the various US stock exchanges. 15 billion remains not a lot in the grand scheme of things.
- gammateam 8y agoJust chiming in to reaffirm that you are correct. Further adding value by mentioning there is an art to trading an illiquid position Michael Dell would have needed to make special considerations than just hitting the sell button to get prices remotely close to the last things printed on screen.