Unfortunately, ambiguous results characterize the theoretical studies. Without these traders, the markets would not exist. Policies that make trading more expensive are likely counterproductive. Recognize that when traders compete to supply liquidity, failure to provide adequate liquidity to uninformed traders tends to be self-correcting. Such failures create extremely profitable trading opportunities.
Accurate prices are ex-tremely important to the American economy.
Large price changes do not necessarily indicate a problem with the closing price. The problem might have been with the opening price. Measures that complicate or slow the price discovery process probably are not desirable. He strongly urged Congress to place the pricing increments at 5 or 10 cents rather than at a penny in order to make pricing and bidding for stocks more democratic.