Stock trading or sex trading — what's the difference?
Wall street is in the business of making money from the spread, the difference between ask and bid price of the stock. Volatile market is in their best interest because then people trade more often. The analysts role is to maintain this volatility doing thus service to Wall street, right? How much real do you think is this somewhat sceptic (or cynical) point of view?
both immoral, but one is legal the other not. Tell Wall steeters they are in an immoral business!
As volume increases spread decreases, I agree, but their product, spread times volume, increases too.
It is like selling cheap humburgers at McDonalds to millions of customers instead of more expensive ones at mom and pop’s restourant to fewer customers. Big industry is always more profitable.
Comments
its the same
The one is risky the other is pimpy
the way I feel about "money" people, and the way I feel about "sex traders" [ie. people that just trade sex for favors instead of for love], I, personally see no difference….both are IMMORAL!
http://www.ask.com/web?q=Stock+trading+vs.+sex+trading&qsrc=0&o=0
Actually..I don’t think it is cynical..I think it is incorrect. MOST of wall street makes commission from either purchase or sale, regardless of the price or spread of the product. SOME on "wall street" (although very few are actually there) DO make money from bid/ask spreads and price differentials. This group would be arbitrage guys and hedge funds. There are far fewer of those guys however than there are regular "retail" and "institutional" brokers. Really, analysts’ jobs are not to increase or decrease volatility, but to provide SOME idea to people on where to put their money in the myriad of choices available. The net effect of a higher volume of both buyers and sellers combined with increased transparency ACTUALLY results in tighter spreads.
***I DO agree that big industry can gain greatly in a high volume environment…but, I don’t have a problem with that. I mean technically, I suppose I could NOT use a $9.99 high volume broker (who is very profitable btw) and I COULD go to a more service oriented low volume shop (who is also very profitable) and pay $50 or $60 or more. But that is MY choice as a consumer…do I want higher service or simply transaction completion. I cannot criticize a group for making money…they are making money because people use them. People with decision making power and alternatives. I CHOOSE to use the brokers I do. I never feel as if I am getting screwed or taken advantage of. If I felt that way, I would walk down the street to the next guy. Or, simply choose to do fewer transactions.
The bid-ask spread is necessary. Without those couple pennies of profit, who would bother to make the market? If there were no market makers, you’d have a much tougher time finding someone to buy stock from or sell stock to. These market makers garantee that you can buy or sell at any given time.
August 11th, 2010 at 5:27 am
You are right, but there is no respect and honour in sex trading.