It all started with a little tool called Twitter and a 140-character rule. Here’s a brief history of how the start-up became a $317 million business.
“We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.”
The Financial Services Industry as a whole have been facing criticism in somewhat or in different form. In the mean time
we are trying to see the industry from the Behavioral prospective and trying to break the problems as follows:
• Simplicity does not pay well: Investing should be relatively simple: Buy broad asset classes, hold them over long periods of time, re balance periodically, get off the tracks when the locomotive is bearing down on you. The problem is its easier in theory than is reality to execute. And, it is difficult to charge excessive fees for these services.
• Confusion is not a bug, it’s a feature: Thus, the massive choice, Continue reading “Financial Services Industry where it has gone wrong”
Last week Knight Capital Group lost $440 million when it sold all the stocks it accidentally bought because a computer glitch. Well Group ($KCG) lost $440 million – that’s aLmost as much as Zuckerberg loses each day!
When this story first broke, it was a bit different from other “algos gone wild” stories we’ve seen in recent history: there were 140 stocks affected, and they were on both the buy side and the sell side. We can say that the large programming trading desk, Continue reading “Desperate times Knight Capital !! Error or scandal”