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Stock Market

Discussion in 'The Dungeon' started by tarheelguy451, Nov 11, 2011.

  1. tarheelguy451

    tarheelguy451 Well-Known Member

    Explain it to me.

    My understanding is its an open market where one can easily invest in publicly traded goods or Some company/coorporations. Bringing together companys that need money to fund money making ideas, with the investors that have the money.

    Does this pretty much sum it up?

    I understand they have super computers now, buying/selling every minute to make a few pennies per share(billions).

    What would happen if when you invested, (bought shares) you were locked in for 5 days??

    10 days?
    30 days?

    Would we stop seeing all this volitility?
     
  2. klebs01

    klebs01 Well-Known Member

    Maybe worse volatility. People may dump securities as soon as they can but not efficiently, so there may be tremendous pent up desire to buy and sell as the window opens. Also, the market would shrink tremendously, as the risk would be exponentially greater. Companies would find it a lot harder to get capital, because of the diminished secondary market.
     

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