this post was submitted on 09 Aug 2024
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Not talking about touching the little guys. Talking about something like limiting sales or buys to $1M per day to curb the leverage these big corps have on the market.

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[–] [email protected] 5 points 3 months ago

Limiting buys would stymie hostile takeovers. Actually, yeah, that wouldn't be a terrible idea. Anyone who wins big because they were able to "strike while the iron's hot" is likely taking significant advantage of their position, and all of their profits come at the expense of people left holding the bag.

[–] [email protected] 3 points 3 months ago (1 children)

No, they don't have as much leverage as you think they might and trying to regulate like this would cause all kinds of systemic issues that could cause far more economic damage then good. There is already halt protections to prohibit dumping where there is not enough interested buyers to handle a selloff for instance.

This would be about restricting institutional liquidity which is just overall a bad idea for the health of the market and retail investors as a whole.

You want to look to fix something, look at fixing HFTs first. They are cancer that affects every market participant.

[–] [email protected] 1 points 3 months ago (1 children)

I’ll look up HFTs. U got more context?

[–] [email protected] 1 points 3 months ago (1 children)

High frequency trading. It's trading measured in milliseconds (or less, nanoseconds now matter) where they are just skimming off everyone else.

It's not accessible to anyone else except a extremely well financed and entrenched few.

[–] [email protected] 0 points 3 months ago

Ah yeah you’re always gonna be behind. It’s a losing game, especially options.

[–] [email protected] 2 points 3 months ago

This in reference to dumping apple? What fallout did that cause?

[–] [email protected] 1 points 3 months ago (1 children)

I feel like any limits would be useless and big trades are often done in Dark Pools which are the wild west. Intro to Dark Pools - Investopedia

[–] [email protected] 0 points 3 months ago* (last edited 3 months ago)

Seems like we should only allow these big firms to trade in Dark Pools