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The claim is they play marketmaker (they hold stocks for short periods of time so your trades execute faster), they obviously want a profit incentive for doing
by maerF0x0 3y ago
The claim is they play marketmaker (they hold stocks for short periods of time so your trades execute faster), they obviously want a profit incentive for doing so.
- kstrauser 3y agoThat begs the question by assuming that trades executing faster are a good thing to optimize for. Is the stock market for investing in a company, or for extracting money from momentary fluctuations? Those seem to be mutually exclusive.
- anamax 3y ago> Is the stock market for investing in a company With the exception of the IPO and buy-backs, the stock market is NOT for/about investing in the company. When you buy IBM on NYSE, IBM doesn't get anything. Similarly for selling stock. If IBM doesn't see any money from a trade, how is that trade an "investment" in IBM? Stock trading is trading partial ownership. That's very different from investing. In other news, there's no money in the stock market. The money that you pay for IBM stock does not go to the "stock market". It goes to whomever owned the stock that you bought.