Americans got ripped off during the financial crisis. Right? Nope! That began decades earlier when financial wizards invented a myth called the “efficient market hypothesis” based on Burton Malkiel’s Random Walk.
Entries Tagged 'Investing' ↓
Brokers Rake in Record Payoffs – No Matter What
August 3rd, 2012 — Investing
Should Insider Trading Be Illegal?
July 11th, 2012 — Investing
When I first read Professor Manne’s Insider Trading in 1996, I thought his arguments were hogwash. I was the indexer for The Collected Works of Henry G. Manne. But Martha Stewart’s experience made me look again at Manne’s view that insider trading should not be illlegal.
The Martha Stewart case
The imprisonment of Martha Stewart was shocking. Martha, a fabulously rich, very productive businesswoman, was arrested for a pre-authorized sale of stock that saved her a whopping $47,673 in losses. She spent five months in a women’s prison.
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Prop Trading – Gaming the Gamers
June 29th, 2012 — Investing
Investment is a form of parimutuel betting involving corporations. Yes, corporations are ultimately the creations of people working as a team to achieve a competitive advantage in order to beat other corporations.
Prop trading at investment banks is to parimutuel betting what craps is to casino betting. Proprietary trading is the most complicated bet, but unlike craps, winning at proprietary trading is not a matter of luck.