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by kelnos 2517 days ago
I was expecting something a lot more detailed. I got to the end and was wondering if this was the first part of a series, since it's nowhere near "everything" anyone would want to know about the stock market. It's barely an introduction.

Then there are the inaccuracies. Zero-sum game? No. Derivatives are "a bet on the rate of change" in value? No. Brokers "help you execute a trade at the best possible price"? Well... not really. The NYSE is a "one stop shop" for people who want to trade? Um, NASDAQ? Any number of non-US exchanges?

Overall, very disappointing.

5 comments

Bond market is off too - bond writers don't set the rate, they just describe the payment schedule and auction it off. Market determines a price, which implicitly sets the rate.

It seems like an earnest effort by the author. I'd encourage them to find a pro to run this piece by as a further learning experience. When you stop getting edits, you are ready to teach a simplified version to others!

I think the writer has confused themselves while attempting to simplify some of these concepts. Instead they should have accepted the financial market is complicated and cannot be condensed into a single blog post.
For anyone who is really looking to understand how the stock market works, I would recommend picking up a copy of "Trading and Exchanges: Market Microstructure for Practitioners" by Larry Harris.
Yeah, this really isn't a good article.
The very first line:

> This is Part 1 of a series. I am not claiming to be an expert by any means, this is just an effort for me to internalize things I’ve learnt.