|
willbeurdaddy -> RE: Goldman Lobbies Senate, Says Full Transparency Sucks (11/6/2009 7:08:50 AM)
|
quote:
ORIGINAL: Brain
If they don't like it they can lump it.
Goldman Lobbies Senate, Says Full Transparency Sucks
One friend of mine put it this way: say Goldman buys a big block of stock from a pension fund in a dark pool. Now they have shares they want to get out of and flatten out their risk. So where do they sell? Well, a big chunk of it might go to the retail schmuck who has no idea what’s going on. He’s buying 1000 shares of whatever at $28, not knowing that Goldman has another 50,000 shares to go. Next thing you know, the schmuck’s shares are at $27.
http://taibbi.rssoundingboard.com/goldman-lobbies-senate-says-full-transparency-sucks
Your friend has no point. First, any informed investor knows about the big block of stock sold by the pension fund. Second, investment banks dont "flatten their risk" by buying something and then selling some of it off. Third, if they decided their purchase was a mistake and wanted to sell it, no one with half a brain would flood the market and drive down the price.
|
|
|
|
