3 ms·
> Healthy markets are markets where everyone has access to the same information. This is not true at all! People are working really hard all the time to gain i
by harryh 13y ago
> Healthy markets are markets where everyone has access to the same information.
This is not true at all! People are working really hard all the time to gain information that they are the only ones they have! If I figure something out about a stock that makes me realize it's mispriced that's only valuable to me as long as that information remains non-public.
- wavesounds 13y agoI think you are confusing "analyzing public information in a new way" with "getting access to non-public information". The former is what all smart traders do, the latter is illegal.
- patio11 13y agoGetting access to non-public information is, in fact, not illegal. Using non-public information from sources with a fiduciary duty to the company is illegal. You can create non-public information in arbitrarily complicated ways. For example, you could hire a satellite firm to put spy cams over every WalMart parking lot and then count the cars in them, then produce a report about WalMart's quarterly sales weeks before the market heard about it from WalMart. That report is non-public, right? Totally legit to trade off of. Satellite analysis of WalMart parking lots is, by the way, an actual thing. (It is an actual thing which suggests, among other things, that if you are a retail investor, you should strongly question whether you really have insight into companies which professional investors do not have.)
- 30thElement 13y agoYou completely missed his point about the difference between non-public information and new analysis on public information. Anyone can go and count the number of cars in a WalMart parking lot. This is new analysis on public information, not non-public information.