Hail Mary Pass !!!!
Hail Mary Pass!!!! Ganga Prasad Rao http://myprofile.cos.com/gangar For once, I am glad I didn't graduate in finance! Why, I'd be burned with flame-mail for the sacrilege I am about to commit! Much attention has been devoted to the study of volatility in equity markets. Many have reached the conclusion it is the search for short-term 'rents' - overnight profits from 'get-rich quick' derivatives - that is to blame. But greed being what it is, it is inconceivable to mandate the elimination of short-term trading opportunities (though, and at a tangent, I can see why speculators are no longer necessary in 'mature' commodity markets). Many also subscribe to the viewpoint markets should reward those 'enterprising' investors who pay to acquire superior information and do their 'homework' over less agile or less alert investors. So, how do we go about designing a solution that rewards 'good' investment behavior over 'bad'? Read on...