4 ms·
Are things like Intrade regulated?
by jraines 18y ago
Are things like Intrade regulated?
- newt0311 18y agoyes.
- mattmaroon 18y agoIntrade doesn't sell stock. It sells betting contracts. It's an entirely different type of regulation, and is actually illegal here.
- fallentimes 18y agoIt is? Oops.
- mattmaroon 18y agoIllegal to run. Not illegal to play at (probably).
- mattmaroon 18y agoI should amend that. Not illegal to play at in most states.
- ckinnan 18y agoIntrade offers futures contracts on various events. It's not betting per se and they can be used as part of a legitimate investment portfolio. It's still illegal here though, the US government will find a way to shut down any kind of innovative online market.
- mattmaroon 18y agoIt's not equity, and unlike futures, there's no underlying asset so it's not analogous to stocks, options, futures, or anything the SEC regulates. It's just a different type of gambling.
- stcredzero 18y agoCouldn't you use betting contracts to implement a kind of stock market? You could certainly use them to implement most kinds of derivatives. What about a non-equity market to finance businesses? Instead of selling equity shares, you are paying money to a company (and a broker) for the opportunity to bet that company will achieve a certain level of income in a certain period? You'd be able to bet both with and against that company. The former would be equivalent to bonds.
- thomaspaine 18y agoIntrade is based in Dublin. The Iowa Electronic Market has a special no-action letter from the Commodity Futures Trading Commission.