Oct. 23, 2023
Volume based discounts make sense for things like a grocery store, a general store or a place that sells goods/services as those goods are then marked up for retail. Makes perfect sense when the business model exists because that market is necessary, especially if the supply chain goes through several transformational steps prior to becoming a finished product; it also makes sense because demand is inelastic for many of these items. The stock market, however, should never have the same application. Why are we discounting goods because one buyer is larger than another? Are they providing a service or creating an opportunity that the market itself can't? Kroger exists because people need groceries and it's not easy or cheap to import everything...but Citadel is an unnecessary party. If they didn't exist, someone else would easily sell what I'm looking for. Institutions, especially market makers and prime brokers, are creating fake liquidity, selling each other shit on a discount and then giving retail/household investors unfair and unequal pricing for the sake of "CrEaTiNg A mArKeT" that already exists and does not have an inelastic demand. My humble request is everyone should be paying fair market value. Be it a 10 share order or a 10 million share order, they shouldn't get special treatment because of their lot size. Gives them an absolute and unfair advantage over small players in the market and allows them to capitalize on an unfair arbitrage that is only offered for them.