GV, re costs
These shareholder costs are reported by the nation's largest independent b/dealer. I'm sure you know who this is.
You must be speaking, then, of two different variables
a. shareholder costs
b. WS's spread or take per trade
I am referring only to the cost per trade per non-institutional shareholders.
It doesn't cost institutions, such as Berkshire Hathaway, $2 per share to execute a trade. It does cost the average shareholder this much on an average 100 share trade. As the number of trades increase beyond 100, the cost per share decreases. But, since 80% of the modal number of trades fall under 500 shares per trade, the cost per share for all transactions remains high.
These costs do not include any additional "spread" market makers make for taking the opposite side of the market. The cost does not include "options" on particular stocks.
When Dell "sells" puts on their own stock, someone "buys", or underwrites those puts. Both Goldman Sachs and Bear Stearns were mentioned, by Dell, as the largest underwriters of the puts Dell purchased above $40 when the trade occurred. When one particular trade occurred it was reported, at that time, as being one of the "largest option trades" in the history of the market by a corporation.
Conspiracy or no, someone benefits, someone loses. |
