Really, what is it? Mark Cuban attempts to frame the business, explains why Wall Street diminishing relevance should be examined and proposed ways to counter that.
Wall Street doesn’t know what business it is in. Regulators don’t know what the business of Wall Street is. Investor/shareholders don’t know what business Wall Street is in.
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. Over just the past 5 years, the market has changed. It is getting increasingly difficult to just invest in companies you believe in.
Its primary business is no longer creating capital for business. Creating capital for business has to be less than 1% of the volume on Wall Street in any given period.
There is value to trading automation. It is here to stay. There is absolutely NO VALUE to High Frequency Trading. None. We need to bring our markets back to their original goals of creating capital for business. It’s impossible to guess how many small to medium size companies have been held back from growing and creating jobs and wealth because of lack of access to capital from the stock market. It’s not impossible to know that our economy has suffered because Wall Street equity markets are no longer a source of equity for helping companies grow,
That’s the reason why I don’t buy stocks. I am not confident that I can win in the long term in stocks with high frequency trading around.