Posts in Finance

Flash Crash 5 Years Later

I remember how I heard about the Flash Crash.  I wasn’t actually trading that day.  An old trader friend of mine messaged me.  “Do you see what’s going on?”  I turned on the television and watched.  If there was a …






Earnings During the Trading Session

Yesterday, Twitter ($TWTR) made a mistake by releasing their earnings numbers before they were supposed to.  The stock dropped off a cliff.  Twitter will have to look at their internal processes to see where mistakes were made, but I don’t …






Never Look A Gift Horse In the Mouth

That’s an old saying. But old sayings have a way of being true.  I remember doing that with out trades on the floor.  Sometimes, you’d have a trade that didn’t match up from the previous day, or even previous hour. …






Chains of Distribution

Why do you need a broker for retail orders in finance?  After all, the page you are looking at is electronic.  The order doesn’t get routed to a human clerk on a floor that routes it to a human who …






GE to Spin Off Banking Operations

Interesting to see bulky corporates start to slim down.  Hewlett-Packard ($HP) did it.  Kraft spun off Mondelez.  Motorola busted itself into several pieces.  Yesterday GE ($GE) decided to spin off it’s GE Capital Arm. I think there is a very …






Individual Choice is Better Than Bureaucratic Choice

Thought these two articles were interesting. The SEC ruled that companies can start selling up to $50M in securities within a 12 month period, subject to eligibility, disclosure, and reporting requirements.  Without parsing the entire regulation, it is a step …






Are You A Puppet?

If you read ZeroHedge enough, you will eventually think dark thoughts all the time.  His blog is predicated on fear.  Sometimes there are some posts there that give a person pause.  This post was one of them.   Out of …






Too Good To Be True

Another financial whiz was locked up.  Remember Bernie Maddof?  He sits in a jail cell.  Remember the high school kid that supposedly made $72M trading?  Yup, fake.  Remember the person that made $150,000 on one trade in live cattle by …






What’s The Most Important Stat in a Market?

With lots of startups doing two sided markets it’s worth looking at what’s important when setting up a market.  It doesn’t matter where you lean politically, or if you think the Keynesians are right, or the Classical people are right. …






Valuations-Be Careful

Been talking to a lot of different startups in different industries at different stages about valuations.  I have a couple of portfolio companies going out to raise money, and one that just finished.  It’s an interesting conversation to have. I …






Should Startups Ever Merge?

The other day Semil Shah wrote an interesting post about “Juggernauts“.  In it, he opined about some very large “startup’ companies like Uber, Dropbox and AirBnb making mergers and acquisitions to expand their business and strengthen their business model. Those …






Corporate Tax Rates Should Be Economically Efficient

Yesterday President Obama released his budget.  3.9 Trillion.  The federal budget is always a monstrous mess.  It’s sort of like looking the the five year profit/loss projections of a startup.  The trick is not to be shocked by the numbers …






First Regulated Bitcoin Exchange

Coinbase is opening the first regulated Bitcoin exchange in the US.  They just completed a $75M round that included the New York Stock Exchange, so I guess it’s not a surprise. I think it’s a great strategic move for Coinbase. …






Banking on The Regulatory Status Quo

My old friend Patrick Young saw my post about Who Needs a Bank?  He sent me a note that I am publishing with his permission here.  Patrick is always highly intellectually stimulating.  I think you will get some stimulation here. …






Priced Rounds Vs Convertible Debt and Bankruptcy

Yesterday I was talking with a bankruptcy attorney.  We have mutual friends and since Chicago is the smallest big town in America, we decided to have coffee.  The subject of bankruptcy came up.  He has also been a real estate …






What’s Margin Really?

Anyone that follows markets knows what happened in forex trading yesterday.  The Swiss government action had spillover effects to stock markets, gold, treasury markets and even some other commodity markets.  It was a cluster you know what. Yra Harris covers …






Expensive Oil: Bad for Market, Cheap Oil: Bad for Market

Ha, I shook my head when I started to see headlines that cheap oil was bad for stocks.  I also didn’t see any headlines blaming speculators for cheap oil like they do when oil hits new highs.  Josh Brown summed …






Earn Money From Your Ideas at Trading View

They say content is king.  If you are a participant in the market, now you are going to have a chance to see if you can earn a little money on the content you create. Last summer, I mentored a …