Monday, April 15, 2013

What business is Wall Street in these days? [Article]

Exasperated with high frequency algorithm trading that now makes up a bulk of financial market transactions, entrepreneur Mark Cuban wonders what business Wall Street is in.
Wall Street is no longer serving the purpose  what it was designed to .  Wall Street was designed to be a market to which companies provide securities (stocks/bonds), from which they received capital that would help them start/grow/sell businesses. Investors made their money by recognizing value where others did not, or by simply committing to a company and growing with it as a shareholder, receiving dividends or appreciation in their holdings.  What percentage of the market is driven by investors these days ?