What do the people who go in person to the New York stock exchange actually do? Especially with online trading and information everywhere?
In: Economics
Imagine you are at an auction. This auction is being televised and people are able to bid on these things at home. Well being there in person allows you to buy items faster instead of calling over a phone and putting your bid in with a debit card. The people in the “pit” are there to buy large amounts of stocks for a price at a fast rate. Let’s say a stock was worth 500 dollars and all of a sudden dropped to 350 well some people who have that stock might want to sell very fast while others who believe the stock would go back up might want to purchase it. That information doesn’t get to the viewers online for a significantly longer period of time. “we are talking 5 seconds to maybe a minute” but by then the stock has already been rebought by someone in the pit. Seeing it first hand and getting dibs on it faster. Think of it as a lag component when gaming. Everyone wants the best set up and the least amount of lag. Only the people that are with the big companies that are trading millions get the best setup (get to send someone to the NYSE pit).
I hope this answers your question.
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