3 ms·
That's just the market converging on current reality, which changed gradually over the course of weeks. A company can't change its fundamentals (the goods and s
by prodigal_erik 14y ago
That's just the market converging on current reality, which changed gradually over the course of weeks. A company can't change its fundamentals (the goods and services it offers) continually in fractions of a second, so any such price fluctuations are noise rather than signal, and we shouldn't be using a system which amplifies and reacts to that.
- simonh 14y agoA company can't change it's fundamentals, no, but the market it operates in can change in seconds. A major disaster, announcement of a government policy, or new economic information can become available that instantly changes the fate of a company, or even a whole industry. You really want to make laws that stop people acting on information? Good luck with that.