Tag: Wall Street

Machine readable news & the stock market [Article]

Robert N Charette writing for the IEEE spectrum is surprised that it took so long for a media hacking to take down Wall Street. If you had not heard yet, on the 23rd of April, an AP tweet said that there were two explosions in the White House & that Barack Obama was injured. In the three minutes that it took get the message repudiated, Wall Street had lost 143 points.  The reason?

Partial blame for the rapid sell-off of stocks is being given to computer-driven trading algorithms that depend on machine readable news.

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 ?