7 ms·
I dont think your pessimistic scenario is nearly slow enough. There is a large buy and hold component of the market, with high frequency trading on the margin.
by s1artibartfast 2y ago
I dont think your pessimistic scenario is nearly slow enough. There is a large buy and hold component of the market, with high frequency trading on the margin.
The random sale model doesn't account for pensions, mutual funds, and individuals that hold. Where would firms like Berkshire Hathaway fit into this model?
I imagine the distribution of stock hold duration is nonlinear/logarithmic
- ricardonunez 2y agoWhat about dark pools?
- s1artibartfast 2y agoWhat about them?
- simne 2y agoBerkshire Hathaway is very special type of investor, as from Buffet cite, they only invest as major owner, avoid to be minor. Because as major they have much more access to internal kitchen of company, not just standard for IPO open balance with omitted details.
- simne 2y ago> individuals that hold I don't consider they serious, because they could buy penny stocks, which are unregulated and are very frequent target for fraud. > pensions, mutual funds Funds are better than individuals, because usually they have some strategy and hiring professionals to control things, but they also prone for mistakes.