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stocktax

(1 post)

30. Trading Tax Won't Reduce Volatility

Reply to octoberlib (Original post)

Wed Feb 27, 2013, 02:15 PM

Feb 2013

The senators are drowning in their own ignorance. High-frequency trading has significant value. It increases liquidity, which reduces investing/trading costs. Volatility has increased because of the reduction in liquidity. Liquidity has declined because markets have become fragmented as regulators have allowed the number of exchanges to increase. In addition, the growth of dark pools has significantly decreased liquidity. If the senators want to decrease volatility, then they should work towards increasing liquidity by encouraging more trading to take place on the major exchanges.

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30 replies

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Democrats Push to Tax Wall Street Trading [View all] octoberlib Jan 2013 OP

tie it to funding the military Angry Dragon Jan 2013 #1

Now we're talking. JaneyVee Jan 2013 #2

Why not go for one/tenth of one percent? kentuck Jan 2013 #3

The Republicans don't WANT the typical American to know how much the rich have. Spitfire of ATJ Jan 2013 #18

we need this. limpyhobbler Jan 2013 #4

That's the question. The article didn't say. octoberlib Jan 2013 #7

Since much of Europe is adopting a financial transaction tax now (Germany and France, not the UK), pampango Jan 2013 #5

This is FOR the people. MrYikes Jan 2013 #6

Actually, it's a cowardly amount kentuck Jan 2013 #8

I think we're supposed to be content that at least they talked about it, even though it won't happen corkhead Jan 2013 #9

^^^This!^^^ BlueCaliDem Jan 2013 #27

That was my theory as well. xxqqqzme Jan 2013 #28

A chance for the silent virtual filibuster to do it's holy work. Dragonfli Jan 2013 #10

Why not 5% or so? Demo_Chris Jan 2013 #11

It's on each and every transaction related to stock market trading. truedelphi Jan 2013 #13

It would certainly slow volatility wouldn't it Demo_Chris Jan 2013 #23

That high a tax would allow us to eliminate virtually every other federal tax. Egalitarian Thug Jan 2013 #17

Yes Demo_Chris Jan 2013 #24

Republican sulphurdunn Jan 2013 #12

great idea! Fight2Win Jan 2013 #14

For anyone worried that such a tax will hurt Wall Street or banks...(Or Bill Nighy fans) FailureToCommunicate Jan 2013 #15

K&R Sherman A1 Jan 2013 #16

nice idea abelenkpe Jan 2013 #19

Let's hope Congress votes with their integrity and not their love for their owners' $$$$$$ judesedit Jan 2013 #20

YES! This is 110% the right thing to do. 80% of voters will love you for it. JUST DO IT!!! nt 99th_Monkey Jan 2013 #21

This is a great idea, it's helps to solve two problems. DrewFlorida Jan 2013 #22

I would do a 1% tax on all stock and derivative trades including funds. airplaneman Jan 2013 #25

As Europe is going with it, 'elsewhere' shrinks. elleng Jan 2013 #26

"Financial transaction tax?" reteachinwi Jan 2013 #29

Trading Tax Won't Reduce Volatility stocktax Feb 2013 #30