Dan Romero
@dwr.eth
Naive finance question: why do stocks have a an exchange they are listed on if they can trade on multiple exchanges and dark pools?
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Aram Mughalyan.eth
@arammughalyan
Because it's a regulated industry and exchanges have rules about minimal disclosures companies have to make, etc. It's not like a DEX where you can trade pretty much any unregulated token.
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Mikko
@moo
Price discovery is inefficient and cost is high in dark pools. Lit order books are good for price discovery and trading retail investor quantities.
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ian
@iandaos
part of it is that exchanges (NYSE, NASDAQ, etc.) want the business and everything that comes with/around it (more than just trading), but the other important aspect is that it centralizes (vs. fragmenting) liquidity, enabling higher volumes, better price discovery, and lower volatility
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Juan and Only
@juan
Farcaster IPO?!
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Gambid
@gambid
Drives hype
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Harry
@nicholls
Makes trading safer and easier, usually more liquidity on an exchange than elsewhere because participants have to be registered to use the exchange. Sure market participants can trade elsewhere but there’s greater risk that you don’t know who you’re trading with nor if they’ll actually be able to pay.
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Bravo Johnson
@bravojohnson
You use dark pools to do large trades without affecting the market price of the stock. You don’t tip off the market making it less lightly to drive up price
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Connor McCormick ☀️
@nor
I feel like @thatalexpalmer.eth would know this
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Juan and Only
@juan
Stonks
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Stuart Culpepper
@stuartculpepper
I believe because the exchanges are regulated. Cos avoid legal actions by the SEC, etc. (In the US)
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