My understanding is that one of the factors mitigating fast and large slides and explosions in the general market and specific stocks has been the costs associated with performing transactions. Now that there are apps that charge no fees for transactions, like Robinhood, does this mean the overall investor base will have more of an incentive to pull its money out when a stock/the market starts sliding and more of an incentive to move its money around it sees a position (that it doesn’t already own) starting to go up?
Are these effects negligible, am I thinking about it the wrong way, or is this actually something to worry about?
Submitted August 01, 2018 at 11:29AM by throwahuey https://ift.tt/2LL01sc
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