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Warren Buffett proposed that the stock market should be open less frequently, like once a quarter or similar. This would encourage long-term investing rather th

Warren Buffett proposed that the stock market should be open less frequently, like once a quarter or similar. This would encourage long-term investing rather than reacting to speculation. Regardless, there are no natural events that necessitate high-frequency trading. The underlying value of things rarely changes very quickly, and if it does it's not volatile, rather it's a firm transiton.

musicale 2y ago
The value of a stock usually doesn't change every millisecond. There doesn't seem to be a huge public need to pick winners and losers based on ping time.
astromaniak 2y ago
> Warren Buffett proposed that the stock market should be open less frequently This will result in another market where deals will be made and then finalized on that 'official' when it opens. It's like with employee stock. You can sell it before you can...
- munk-a 2y ago
  Not if we disallow it. We have laws in place to try and prevent a lot of natural actions of markets.
  - FredPret 2y ago
    Instant biggest black market of all time, corruption skyrockets, only the richest people get fair deals on investments.
    - akira2501 2y ago
      They'll get better than fair deals. They will almost exclusively own all the available pricing information.
- FooBarBizBazz 2y ago
  > It's like with employee stock. You can sell it before you can... I thought that this was explicitly forbidden in most SV employment contracts? "Thou shalt not offer your shares as collateral or (I forget the exact language) write or purchase any kind of derivative to hedge downside.' No buying PUTS! No selling CALLs! No stock-backed loans! Or do people make secondary deals despite this, because, well, the company doesn't know, does it?
htrp 2y ago
most trading volume already happens at open or before close.
Arnt 2y ago
AIUI the point of HFT isn't to trade frequently, but rather to change offer/bid prices in the smallest possible steps (small along both axes) while waiting for someone to accept the offer/bid.
kolbe 2y ago
Seems like a testable hypothesis. Choose the four times a year that the stock is at a fair price, and buy when it goes below it and sell when it goes above it?
affyboi 2y ago
Why shouldn’t people be allowed to do both? I don’t see much of an advantage to making the markets less agile. It would be nice to be able to buy and sell stocks more than once a quarter, especially given plenty of events that do affect the perceived value of a company happen more frequently than that

musicale 2y ago

The value of a stock usually doesn't change every millisecond. There doesn't seem to be a huge public need to pick winners and losers based on ping time.

astromaniak 2y ago

> Warren Buffett proposed that the stock market should be open less frequently This will result in another market where deals will be made and then finalized on that 'official' when it opens. It's like with employee stock. You can sell it before you can...

munk-a 2y ago
Not if we disallow it. We have laws in place to try and prevent a lot of natural actions of markets.
- FredPret 2y ago
  Instant biggest black market of all time, corruption skyrockets, only the richest people get fair deals on investments.
  - akira2501 2y ago
    They'll get better than fair deals. They will almost exclusively own all the available pricing information.
FooBarBizBazz 2y ago
> It's like with employee stock. You can sell it before you can... I thought that this was explicitly forbidden in most SV employment contracts? "Thou shalt not offer your shares as collateral or (I forget the exact language) write or purchase any kind of derivative to hedge downside.' No buying PUTS! No selling CALLs! No stock-backed loans! Or do people make secondary deals despite this, because, well, the company doesn't know, does it?

htrp 2y ago

most trading volume already happens at open or before close.

Arnt 2y ago

AIUI the point of HFT isn't to trade frequently, but rather to change offer/bid prices in the smallest possible steps (small along both axes) while waiting for someone to accept the offer/bid.

kolbe 2y ago

Seems like a testable hypothesis. Choose the four times a year that the stock is at a fair price, and buy when it goes below it and sell when it goes above it?

affyboi 2y ago

Why shouldn’t people be allowed to do both? I don’t see much of an advantage to making the markets less agile. It would be nice to be able to buy and sell stocks more than once a quarter, especially given plenty of events that do affect the perceived value of a company happen more frequently than that