Hi guys, Is it allowed for a stock trading company to be listed on stock market ? For example if one has a company whose sole business is trading stocks to make profits, can it be listed itself as a stock to be traded ? Is Berkshire Hathwau an example of such a stock ? If so, what are other such examples ? Does the stock trading company invest the proceeds of selling its shares in stock market to make profits ? i.e. the capital raised by selling shares get invest in its main business which is stock trading ? If so, what is the difference between such a company and a hedge fund ? Thank you
Virtu is such a company, and they’ve acquired others. Though also some hedge funds like BlackRock. Such companies also launch ETFs for similar purposes - to be traded on public markets. A corporation would trade its own money. An ETF will trade other people’s money while disclosing their holdings. And a hedge fund will use proprietary ways of trading and can only accept money from qualified/accredited investors.
the whole purpose of listing is for the Exchange to earn more $$$ for the company (be it stock trading, brothel, casino, WWE or whatever ) to earn more $$$ and for traders to earn even more $$$
Doesn’t look rigged when people simply are buying the bankrupt company’s shares. It should be allowed to give them as many worthless shares as they’re willing to buy.
Yes, I believe it is allowed as the purpose of listing if to allow the exchange and work more and more to increase the earning. I have even found that some of the bankrupt companies are too issuing the new shares. Forex trading can actually be quite rigged.