It is a cost/benefit like anything else. Imagine a market where a position must be held for at least one week.
Sure, there is some efficiency in capital allocation lost but how much of a cost is that really? As I understand it its a loss inasmuch as daily stock price fluctuations reflect the actual underlying of a company: not much.
What do you have on the benefit side? For one thing, you won't have the flood of people betting on whether or not Facebook will "pop."
Sure, there is some efficiency in capital allocation lost but how much of a cost is that really? As I understand it its a loss inasmuch as daily stock price fluctuations reflect the actual underlying of a company: not much.
What do you have on the benefit side? For one thing, you won't have the flood of people betting on whether or not Facebook will "pop."