Marie PhD
  • Home
  • Politics
  • #OccupyCongress
  • Overview
  • Domestic Violence
  • Food

Stock markets

3/3/2015

0 Comments

 
Modern stocks are primarily owned by other corporations, think banks,  especially after Glass Stegal was repealed and ordinary banks could act as merchant banks allowing them to borrow at extremely low rates from the Fed (I think it's something like  0.7%) it allows banks to roll the dice with huge funds that aren't even theirs (and we now know how that works out). With the funds at their disposal any significant purchase will very likely develop purchasing trends by themselves, and especially when high frequency trading coincides. High frequency trading is when stock purchase orders are intercepted, delayed, and new stock purchase orders by whoever intercepts are placed ahead of the original order. this means the interceptor gets a cheaper price for the stock, the original ordered has to pay more for their shares and the end result is a developing trend so the interceptor can make a guaranteed profit when they turn around and sell their shares.

So let's say a bank buys 1000000 shares for $Y, the actual price doesn't matter,  the share price goes up some percentage because of the purchase (this is the model high frequency purchasing uses),  even if the price goes up 5c per share, if the bank then turns around and sells the 1000000 shares, the bank will make $50000 and this was in possibly only in a few seconds.  A bank with international access can do this all day long 1000s of times in 5minutes, all day all night assuming a stock market is open and they are open all over the world. 

Banks don't have to worry about purchasing and selling costs of shares that ordinary people have to pay either when buying and selling stock. Also there is no sales tax on shares either.

There is a lot of potential for good here.  A crowd source funded cooperative could also work this system guaranteeing profits are shared fairly but most 401k managers take their profits and share only something like 5% with their clients yet will conveniently hide behind their limited liability if they mess up. there is always risk with stock market casinos as I like to call them, however the odds are really you are betting stocks will go up or down and you have to maximize your share of the difference, or settle for increments of profit. Someone once suggested you should aim for 10% on the cost of the share. Banks and other major players however can settle for 5c because they can rinse repeat millions of times per day. And this also minimizes their risk. ordinary people have buying and selling costs so 5c is too small of an increment and this is where you truly get entry barriers.

Anyway the point of this article is penalizing small players because they sit on their shares because of the evil the corporation is doing is cruel because they are very likely to be uninvolved in the decisions to do the evil and the CxOs are really playing to the major players who are buying and selling millions of shares a minute.

Penalizing owners always comes down to penalizing small players. 
0 Comments



Leave a Reply.

    Author

    I am interested in progressive politics, women's rights, science & art. I believe the only way we'll survive is if we help each other.

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    December 2016
    November 2016
    October 2016
    August 2016
    July 2016
    June 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012

    Categories

    All
    Abortion
    Anarchy
    Animals
    Atheism
    Austerity
    Banks
    Bodies
    Caitlyn Jenner
    Charity
    Children
    Communication
    Community
    Conservative Christianity
    Conservatives
    Conspiracy
    Constitution
    Corporation
    Corporations
    Deficit
    Deregulation
    Despotism
    Disenfranchised
    Duggars
    Dylann Roof
    Environment
    Equality
    Facebook
    Feminism
    Food
    Foreclosure
    Gender
    God
    Gop
    Gop Primaries
    Government
    Guns
    Hastert
    Healthcare
    Hierarchy
    History
    Humans
    Independence
    Kindness
    Knowledge
    Law
    Libertarian
    Libertarianism
    Limited Liability
    Loneliness
    Love
    Mating
    Medicare
    Men
    Military Industrial Complex
    Motherhood
    Nature
    Obama
    Obesity
    Occupy
    Orwellian
    Pedophilia
    Politics
    Power
    Powerlessness
    Premium Children
    Prostition
    Punishment
    Rape
    Revolution
    Richard Dawkins
    Sanity
    Sex
    Slut-shaming
    Status Quo
    Stock-market
    Suicide
    Teachers
    Transgender
    TV
    Us Corporations
    Violence
    Vulnerability
    Welfare Queens
    Women
    Women's Work
    World Domination

    RSS Feed

Powered by Create your own unique website with customizable templates.