First In-First Out is they way most of the world works, which is why fans will stand in line for absurd lengths of time to buy some things. Once people discover that you are dealing some other way, they can get very upset.
One of the reasons that people make obscene amounts of money on IPOs is that certain customers get the right to buy before the stock is officially available for sale. The company behind the stock doesn’t get the price after run up, they only get the initial offering price, i.e. if a company goes public with a million shares with an offering price of $30, the company only gets $30 million, even if the shares hit $150/share on the first day. That’s a lousy way of raising capital. The people who make most of the money are the preferred customers who only own the stock for a few hours at most.
]]>Well, Jim, if they aren’t going to regulate them, we might as well make them pay for some of the damage the markets cause.
Steve, Goldman Sachs makes it money by co-locating its servers with those of the Exchange. The Exchange gets a fee, but it gives GS a time advantage that it uses to make a lot of money. In this case we are taking about an advantage of micro or nanoseconds, which is a major advantage in computer trading. Another “fair and balanced” system.
]]>Rule One for the individual investor: fuggedaboutit, you can’t win.
]]>The trading “secret” embedded in the text near to the end is that you need to be able to lose at least $10,000 before you could expect to be able to make any money (some reviewers said $50,000) due to the steep learning curve.
Very popular book.
Which I immediately discarded when I got to the “secret” info material.
No one has trusted the market since the dot-com bust.
S
]]>The traders make their money with stock turn-over, not investments. They don’t want clients buying and holding stock, they want a lot of trades because they get a fee for every trade, whether it’s a buy or a sell. If someone just buys stock and holds it, there is no income for the company.
Their purpose is to make money for themselves, not their clients.
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