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I gather that Mark is upset that HFTs use stocks as pawns and resale merchandise here. Essentially, HFTs buy stocks just because the supply and demand numbers
by Tipzntrix 14y ago
I gather that Mark is upset that HFTs use stocks as pawns and resale merchandise here. Essentially, HFTs buy stocks just because the supply and demand numbers look right. These algorithms most likely don't do research into the background of a company, they don't do character checks on executives, and they don't look at what kind of expertise the staff or board has. They just look at the buy/sell rates historically and take advantage of good opportunities. They're essentially middlemen in between the buy and the sell rates, and feel a lot like retail stores. You could almost compare them to Wal-Mart. Get whatever the hell goods they can, give a better rate than anyone else, sell to people who actually want the goods. However, they are not buying stocks as a sign of faith in the company, which is what I think Mark Cuban believes is the real point of the stock market.