TrueAnon

Episode 134: Freakanomics

31 snips
Feb 4, 2021
The chaos of the stock market is front and center as the hosts unpack the wild GameStop saga. They humorously critique how social media has reshaped trading narratives and explore the risks of trading apps like Robinhood. A mix of personal anecdotes and financial insights reveals the complexities behind margin accounts and short selling. The discussion even touches on the gamification of investing and its impact on novice traders. With a blend of humor and sharp commentary, they take a deep dive into the cultural implications of this financial frenzy.
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ANECDOTE

Brace's First Stock Purchase

  • Brace Belden shares his first-time experience buying GameStop stock on Robinhood.
  • He bought $500 worth at $86 a share soon after signing up for the app.
INSIGHT

Stock Market Plumbing Explained

  • Stock transactions occur through brokers and a clearinghouse that certifies and matches trades.
  • This complex process involves multiple parties and happens seamlessly every moment.
INSIGHT

Robinhood's Order Flow Secret

  • Robinhood's real customers are firms buying order flow, not individual traders.
  • These firms use the trade data to front-run and profit from users' trades.
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