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Quant firms provide value to society, hence why they are compensated for it. Liquidity and price discovery are useful things. Nobody would pay them otherwise.
by pembrook 4y ago
Quant firms provide value to society, hence why they are compensated for it.
Liquidity and price discovery are useful things. Nobody would pay them otherwise.
- jabradoodle 4y agoIf the definition of providing value to society = making a profit, then is selling heroin providing value to society?
- bheadmaster 4y ago> Liquidity and price discovery are useful things. Nobody would pay them otherwise. Is there any other evidence of their usefulness beyond "people pay for it"?
- sokoloff 4y agoOn the liquidity side, would you pay more for a security that you could easily and quickly sell with small slippage than you would for a security that could not be easily sold or only sold with a large slippage? "People pay for [that]" because it's a genuinely useful property of an investment vehicle.