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Flash crashes and short term volatility don't affect investors, they primarily affect other traders. The issue is not whether a 30 second hold on a stock is be
by fleitz 15y ago
Flash crashes and short term volatility don't affect investors, they primarily affect other traders.
The issue is not whether a 30 second hold on a stock is better / worse than a 3 year hold but whether stock markets still serve their purpose of providing capital for companies. The vast majority of trades are for stock that does not capitalize the company.
- paperwork 15y agoThe stock market has never provided capital for companies. Companies generally sell their stock to investment banks (stock offerings, initial or subsequent). Those initial share owners turn around and sell in the secondary market -- what we call the stock market. When I buy shares of MSFT, they don't get my money.