On: 'Flash Boys' IEX stock exchange opens for business

[murbard2]

Markets do not allocate capital, they provide liquidity for investors making them more likely to invest during stock offerings in the first place.

[eru → murbard2]

Those are just different faces of the same coin.

[murbard2 → eru]

No, well functioning exchanges affect the amount of capital that gets invested in ventures not how well it is allocated.

[eru → murbard2]

People are looking forward. How much money individual startups can raise (or established companies when increasing capital) depends on their expectations of future prices on the exchanges.