If you can’t personally stand on the exchange floor and shout your trades, you need orders. In Chapter 4, Larry Harris breaks down the different types of instructions you can give your broker and why the specific type you choose is the biggest factor in your success.
In part 1 we talked about how the US basically invented private equity. Now the question is: can everyone else just copy the homework? Demaria’s answer is basically “it’s complicated.” Europe tried to adapt the American model. Emerging markets are still figuring things out. And the results are… mixed.
In the second half of Chapter 3, Larry Harris dives into the different types of markets and the rules that keep them from turning into the Wild West.
I just finished reading “Hedge Fund Analysis: An In-Depth Guide to Evaluating Return Potential and Assessing Risks” by Frank J. Travers, and I want to break it down for you in a series of blog posts.
Chapter 2 of Demaria’s book opens with a fun question: is modern private equity a French invention? The word “entrepreneur” is French. The guy who basically created modern venture capital, Georges Doriot, was French. But he did it in America. At Harvard, not in Paris. That tells you something about where the conditions were right.
In Chapter 3, Larry Harris zooms out to give us the “big picture” of the trading industry. If you want to understand market microstructure, you first need to know who the players are and what they’re actually trading.
Chapter 1 of Cyril Demaria’s book opens with a story you probably did not expect in a finance textbook. Christopher Columbus. Yep, the guy with the ships.
In Chapter 1, we talked about the theory. In Chapter 2, Larry Harris gives us four stories to show how these concepts work in the wild. If you’ve ever wondered what happens behind the scenes of a “Buy” button, this is for you.
If you’ve ever wondered why prices move the way they do, or why some people seem to always make money while others lose, you’re looking for market microstructure.
You would think that a thing called “private equity” would be easy to define. It has two words. One means private. The other means equity. Should be simple, right?