Re:Apple and the risks of trading 29,000 times per second
by fleitz on Tuesday March 27, 2012 @04:08AM
(#3760547)
The intrinsic value of a company is unknowable, the only thing we can know is the market value.
For some companies I do think the value could change 29,000 times per second, if it didn't the stock simply wouldn't move . You can see this in the juniors where HFT is rare if non-existant.
I do think that it's a good idea to have an exchange that doesn't allow HFT, or perhaps only allows trades every day, and for it to be able to compete with exchanges that do allow HFT. If this system is better then companies will list their stock on that exchange instead of exchanges that don't allow HFT.
However, what I disagree with is the idea that people should be put in jail for trading stock too frequently.
For some companies I do think the value could change 29,000 times per second, if it didn't the stock simply wouldn't move . You can see this in the juniors where HFT is rare if non-existant.
I do think that it's a good idea to have an exchange that doesn't allow HFT, or perhaps only allows trades every day, and for it to be able to compete with exchanges that do allow HFT. If this system is better then companies will list their stock on that exchange instead of exchanges that don't allow HFT.
However, what I disagree with is the idea that people should be put in jail for trading stock too frequently.