Are Fractional Shares Just a Gimmick?

One area of finance that has been getting a lot of attention lately is the concept of “fractional shares” and their use in investment portfolios. In an effort to make investing cheaper and more available to the masses, certain brokerages are allowing clients to buy fractional shares so that investors aren’t burdened with having to…

Buyer Beware

One unintended consequence of COVID-19’s impact on financial markets has been the influx of new retail investors. Online brokerages, such as Robinhood, provide a platform where almost anyone can deploy capital into public markets, regardless of their experience or financial means. While the goal of platforms like Robinhood is to “democratize” investing, the ease of…

What is Driving the Surge of Interest in Stocks?

Whether it’s from speaking to friends and family or browsing social media feeds, it’s easy to see that there is a renewed interest in the stock market among retail investors. At first glance, having more people interested in their personal finance and investing in financial markets seems like a very positive thing. However, after closer…

The Cost of High-Frequency Traders and Latency Arbitrage

A new study released by the Financial Conduct Authority (FCA) in the U.K. has reignited concerns around the ability of predatory high-frequency traders (HFTs) to profit on equity trades by using a technique called “latency arbitrage.” Latency arbitrage is a practice used by HFTs that utilizes a fragmented market structure and speed to “snipe” stale…