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A comment on What Business is Wall Street In?. Parent comment

Re:What Business is Wall Street In? by lmm on Friday September 21, 2012 @01:06PM (#4554571)
>It seems like you take issue with that fact that stock price changes have become more correlated. Is it bad/wrong/unlawful/unethical that traders may want to sell(buy) stock A when the price of stock B decreases(increases)?

It suggests the market is no longer performing its intended function of allocating capital to those companies that will use it most efficiently.

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Re:What Business is Wall Street In? by djoldman on Friday September 21, 2012 @01:19PM (#4554663)
"It suggests the market is no longer performing its intended function of allocating capital to those companies that will use it most efficiently."

Please explain how the trading of a company's stock changes that company's capital allocation.

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Re:What Business is Wall Street In? by lmm on Sunday September 23, 2012 @02:38PM (#4561653)
A company's market capitialization is its capital allocation. It's reasonably common for companies to use their own stock when making big buys (such as other companies).
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