Is it allowed for a stock trading company to be listed on stock market to raise capital?

T

traderwald

Hi guys,

Is it allowed for a stock trading company to be listed on stock market ? For example if one has a company whose sole business is trading stocks to make profits, can it be listed itself as a stock to be traded ?

Is Berkshire Hathwau an example of such a stock ? If so, what are other such examples ?

Does the stock trading company invest the proceeds of selling its shares in stock market to make profits ? i.e. the capital raised by selling shares get invest in its main business which is stock trading ?

If so, what is the difference between such a company and a hedge fund ?

Thank you
 
Virtu is such a company, and they’ve acquired others. Though also some hedge funds like BlackRock.

Such companies also launch ETFs for similar purposes - to be traded on public markets.

A corporation would trade its own money.
An ETF will trade other people’s money while disclosing their holdings.
And a hedge fund will use proprietary ways of trading and can only accept money from qualified/accredited investors.
 
the whole purpose of listing is
for the Exchange to earn more $$$
for the company (be it stock trading, brothel, casino, WWE or whatever ) to earn more $$$
and for traders to earn even more $$$
 
Last edited:
S2007S said:
Hahaha. How that is allowed is beyond me....just shows you how rigged the game is.
More...


Doesn’t look rigged when people simply are buying the bankrupt company’s shares. It should be allowed to give them as many worthless shares as they’re willing to buy.
 
Yes, I believe it is allowed as the purpose of listing if to allow the exchange and work more and more to increase the earning. I have even found that some of the bankrupt companies are too issuing the new shares. Forex trading can actually be quite rigged.
 
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