Black Edge: The Secret World of Wall Street and the Illusion of the Financial Markets is a non-fiction book written by Sheelah Kolhatkar. The book was published in 2017 by Henry Holt and Company and it delves into the world of Wall Street, specifically the world of high-frequency trading and the practices of some of the largest banks in the world.
The book explores the rise of high-frequency trading and how it has changed the landscape of the financial markets. It also delves into the practices of some of the largest banks in the world, including Goldman Sachs, Morgan Stanley, and Citigroup, and how they have used their power to manipulate the markets and enrich themselves at the expense of ordinary investors.
Black Edge is an important book for anyone who wants to understand the inner workings of the financial markets and the practices of some of the largest banks in the world. It is a well-researched and well-written book that provides a detailed look at the world of high-frequency trading and the practices of some of the largest banks in the world.
Chapter Summaries
Chapter 1: The Rise of High-Frequency Trading
In this chapter, Kolhatkar provides an overview of the rise of high-frequency trading and how it has changed the landscape of the financial markets. She explains how high-frequency trading uses powerful computers and sophisticated algorithms to buy and sell stocks in fractions of a second, making millions of trades per day. She also explains how high-frequency trading has made the financial markets more efficient and profitable, but also how it has also created new risks and challenges.
Chapter 2: The Flash Crash
In this chapter, Kolhatkar delves into the infamous Flash Crash of May 6, 2010, when the Dow Jones Industrial Average plunged nearly 1,000 points in a matter of minutes before recovering almost as quickly. She explains how the Flash Crash was caused by a combination of high-frequency trading and human error, and how it highlighted the risks of the new technology.
Chapter 3: The Secret World of High-Frequency Trading
In this chapter, Kolhatkar provides a detailed look at the world of high-frequency trading, including the people who work in it and the sophisticated algorithms they use. She also explains how high-frequency trading is regulated and how it has become a key part of the financial markets.
Chapter 4: The Power of Goldman Sachs
In this chapter, Kolhatkar delves into the history of Goldman Sachs and how it has become one of the most powerful banks in the world. She explains how Goldman Sachs has used its power to manipulate the markets and enrich itself at the expense of ordinary investors, and how it has also been involved in some of the biggest financial scandals in recent history.
Chapter 5: The Dark Side of High-Frequency Trading
In this chapter, Kolhatkar explores the dark side of high-frequency trading, including the potential for manipulation and fraud. She explains how some high-frequency traders have used their power to manipulate the markets and make money at the expense of ordinary investors, and how regulators have struggled to keep up with the new technology.
Chapter 6: The Illusion of the Financial Markets
In this chapter, Kolhatkar delves into the illusion of the financial markets and how they are often seen as a safe and reliable way to invest money. She explains how the financial markets are actually highly volatile and risky, and how they are often manipulated by powerful interests.
Conclusion
Black Edge is an important book for anyone who wants to understand the inner workings of the financial markets and the practices of some of the largest banks in the world. It is a well-researched and well-written book that provides a detailed look at the world of high-frequency trading and the practices of some of the largest banks in the world. Kolhatkar’s book is a must-read for anyone who wants to understand how the financial markets really work and how some of the largest banks in the world have used their power to manipulate the markets and enrich themselves at the expense of ordinary investors.
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