How long does the average share holding last?

[doodab]

It's a market. Those who get involved in it do so of their own free will. Who are you to tell them that they should not?

I think the point is that some market participants and types of behaviour distort the market to the detriment of the other participants. The question is to what extent do you allow such behaviour when doing so effectively requires you to tell other people to go and **** themselves.

Although such short term exploitation might make money for those doing it, it seems it doesn't contribute much to the efficient allocation of capital in the wider economy, and if in fact it serves to dissuade longer term investors from getting involved then ultimately the market for new share issues and with it the supposed positive contribution of the market will suffer.

A related question is should we wait until any ill effects are proven before taking action or should the onus be on those wishing to engage in this practice to prove that it's harmless?

[fullyautomatix]

Unfortunately AtW, we are living in a era where companies issue shares and drop dead like flies the next moment because there was a recession or that consumers decided to stay at home instead of going out shopping. So it makes sense to make some short term profit instead of taking the risk of losing everything.

[d000hg]

<rant>

Key word here is 'average'.

[AtW]

Key word here is 'average'.

Yes and this means lot of transactions are probably for under a second ownership and a handful of others lasting few years.

The market is there for economic reasons, or at least it was before it got turned into casino, in fact it's worse than a casino - people who try to use technical means in a casino get kicked out or even go to jail for cheating, even more importantly in a casino players gamble against each other and this has no material effect on real world who does not want to know about this tulip.

So in conclusion - stock market is worse than a casino.

[doodab]

So in conclusion - stock market is worse than a casino.

Casinos are the world in microcosm.

[Ignis Fatuus]

I think the point is that some market participants and types of behaviour distort the market to the detriment of the other participants.

I think the point is that some market participants and types of behaviour affect the market to the detriment of the other participants.

In what way is that a "distortion"?

[d000hg]

Out of interest, don't even large companies have to pay some fee or deal with difference in buy/sell price... how do they make money on holdings of a few seconds when the price isn't varying much?

[Freamon]

So there you have it - free market has turned into computer driven spekulative tulip: perhaps it's time for compulsory 60 minutes delay between trades and 110% tax on capital gains made from less than 2-3 years of holding assets.

My personal shareholding record is over 20 years and still going strong

If you think there should be a law that locks investors into holding shares for a minimum of 2-3 years then I have some shares I would be very happy to sell you.

[AtW]

If you think there should be a law that locks investors into holding shares for a minimum of 2-3 years then I have some shares I would be very happy to sell you.

How long have you held your shares? 23 seconds!?!

[Freamon]

Out of interest, don't even large companies have to pay some fee or deal with difference in buy/sell price... how do they make money on holdings of a few seconds when the price isn't varying much?

Many reasons, one of which is the rebates that brokers are given by the exchange for providing liquidity:

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