Computer powerhouse of D.E. Shaw & Co. may be showing Wall Street's direction
Article Abstract:
D.E. Shaw and Co, headed by computer expert David E. Shaw, is a brokerage firm using computerized trading methods that has traded as many as 10 million shares in one day - the equivalent of five percent of the total volume on the New York Stock Exchange. Industry experts believe the firm has been earning 30 percent annual returns, although the company will not say what stocks it trades in. The company uses about $500 million from a wealthy clientele. Shaw uses mathematical methods to find undervalued stock to buy. Its Sun Microsystems computers make extensive use of algorithms and analyze relationships among securities, constantly updating the company's main portfolio. The firm has also been known to make use of off-exchange markets that Wall Street does not see. Biographical details on Shaw are presented.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Curb futures, not programs, some declare
Article Abstract:
Stock-index futures are under attack as investment firms and stock brokerages try to determine ways of stabilizing an erratic stock market. Though 'derivatives' such as futures and options are usually seen as helping market liquidity, some in the industry feel stock-index futures contribute to market volatility or that futures detract form the stock market's basic function. Instead of following the stock market, as was once expected, the futures market actually makes the stock market follow its ups and downs because traders routinely check the futures market before buying or selling stocks.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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For an hour and a half yesterday, IBM shares were priceless
Article Abstract:
IBM's announcement of its cost cutting and restructuring plan caused the New York Stock Exchange (NYSE) to delay the opening of IBM's stock for an hour and a half. Some traders blame IBM for taking 40 minutes to put out the announcement over the Dow Jones News Service and for not scheduling a meeting to inform analysts of its plans earlier. Other traders blame the NYSE for delaying the opening too long and for not releasing an opening indication for more than an hour.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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