An Open Letter To Mark Zuckerberg

[Tams 20]

An Open Letter To Mark Zuckerberg

 

An Open Letter To Mark Zuckerberg About Why It Doesn’t Matter Where You List Your Stock

 

 

 

Dear Mark Zuckerberg,

 

Congratulations on your IPO filing. We understand that you are faced with a difficult decision soon on where to list your stock. You have probably heard from your bankers that the NASDAQ exchange is for tech savvy companies like Google and Apple and the NYSE is where the blue chip companies like GE and Caterpillar choose to list. You may think that the NASDAQ market is more of an electronic exchange where dealers place competing bids and offers to help facilitate institutional client trades. You may look at financial television and see scenes from the NYSE and think that the NYSE market is more of a floor based auction model where your stock would trade at a “post” on the exchange. You may be thinking that regardless of which exchange you pick, your stock will help investors create wealth for themselves by investing in your company for the long-term.

 

We hate to break the bad news to you but the fact is....

 

 

 

http://www.ritholtz.com/blog/2012/02/an-open-letter-to-mark-zuckerberg-about-why-it-doesn%E2%80%99t-matter-where-you-list-your-stock/

[henryduncan12 10]

Thanks to share " An Open Letter To Mark Zuckerberg" website link here. I read full article and want to say NYSE or NASDAQ does not big matter for Facebook founder. Traders are interested to buy their share not interested to know where it is listed.

[ValueTrader 10]

Thanks to share " An Open Letter To Mark Zuckerberg" website link here. I read full article and want to say NYSE or NASDAQ does not big matter for Facebook founder. Traders are interested to buy their share not interested to know where it is listed.

 

You clearly didnt READ THE LINK - else in your hurry to supply a clever answer you wouldn't have missed the point of a rhetorical question.

[joshdance 10]

Thanks Tams for posting, but a little pet peeve-- it's really appropriate to start a post like this with:

 

"From Themis Trading and written by ... :"

 

It makes it look like YOU wrote the open letter, and unless someone clicks the link they would never know.

[snowboy 10]

Do you know what an exchange private data feed is?

 

 

What is "exchange private data feed"?

[henryduncan12 10]

You clearly didnt READ THE LINK - else in your hurry to supply a clever answer you wouldn't have missed the point of a rhetorical question.

 

Hi ValueTrader, I think you are in hurry to comment in my reply. I read complete article. When someone go for buying share of a company they concentrate on company's profile not thing more about where it is listed.

[equtrader 10]

Hi ValueTrader, I think you are in hurry to comment in my reply. I read complete article. When someone go for buying share of a company they concentrate on company's profile not thing more about where it is listed.

 

I agree with this too.

[ValueTrader 10]

Hi ValueTrader, I think you are in hurry to comment in my reply. I read complete article. When someone go for buying share of a company they concentrate on company's profile not thing more about where it is listed.

 

Poor Henry! You clearly DON'T understand rhetoric.

 

The article clearly states it doesn't mater where its listed because

 

" We hate to break the bad news to you but the fact is, in today’s market, it doesn’t matter where you list. Your stock is about to become one of the biggest casino chips on Wall Street. Ever hear the terms rebate arbitrage or latency arbitrage? Ever hear of colocation? Do you know what an exchange private data feed is? How about an actionable IOI or a dark pool? We bet you have probably never heard of these terms (maybe you have been too busy coding lately or ducking those Winklevoss twins). These terms are really what stock trading is all about nowadays."

 

(courtesy of: An Open Letter To Mark Zuckerberg About Why It Doesn)

 

So the message of the article is "When someone go for buying share of a company" as you so eloquently put it, the fundamentals of the company and related COMPANY PROFILE really don't matter as High Frequency trading, Arbitrage etc are going to be what drives the price. Therefore the average buy and hold investor will get chopped up.

 

The author of the article is lamenting the fact that modern ultra high frequency trading is skewing company share prices thus making traditional investing obsolete.

 

He's not musing on which exchange the shares should be traded on.

[BlowFish 10]

Yeah funny 'letter' shame that some seemed to miss the rather bitter (but broadly true) pokes at HFT, dark pools, real liquidity even speculation in general.

 

I think I have read these guys before, certainly they have an axe to grind but still broadly call it how it is.

[henryduncan12 10]

Poor Henry! You clearly DON'T understand rhetoric.

 

So the message of the article is "When someone go for buying share of a company" as you so eloquently put it, the fundamentals of the company and related COMPANY PROFILE really don't matter as High Frequency trading, Arbitrage etc are going to be what drives the price. Therefore the average buy and hold investor will get chopped up.

 

 

Hi ValueTrader, Why do you think that all traders who buy share of a particular company don't think about its profile. Do you know that in 2008 recession, IT industry was most affected by it but some IT companies have less impact while some have more. What was the reason behind share value of some companies going down while some stable? "company profile". If you will ask traders who are in trading for long time how they decide to buy share of a company then will get replies "We check company profile first, etc"

 

Reason: If market is going up it means is not that all companies listed in it going up therefore company profile does matter.

[ValueTrader 10]

Further to TAMS original post...

 

Financial Standard - HFT and dark pools keep ASIC on its toes

[joshdance 10]

Further to TAMS original post...

 

Financial Standard - HFT and dark pools keep ASIC on its toes

 

Seems pretty easy to me to define what HFT is. A "normal" human trade cycle of open and close will take no less than half of a second. Do some research perhaps, and determine some basic human limitation for speed of execution. Anything beneath that is HFT. Perhaps it's closer to 0.1 seconds for humans.

 

It would be like determining a normal human reflex or response time for something like moving out of the way of an incoming object. Do the same for trading, and it will work if they then want to do something with HFT activity.

[SIUYA 11]

if you define something you put yourself in the position of having to then cover all bases for where it does not fit your definition but you still need to have the ability to regulate it - the regulators dilemma.....however yes - a working definition of varying degrees (VHFT, HFT, Maket Makers, automatic traders, day traders, weekly traders, phone in and chat private bankers) would at least be a good start.....

[Tams 20]

If I Were a Broker, Here’s How I’d Sell Facebook

 

If I Were a Broker, Here’s How I’d Sell Facebook | The Reformed Broker