Mark Cuban says it isn’t the investors who are causing problems on Wall Street. It’s the traders and financial engineers. The market is no longer driver by shareholders, he says, it’s driven by quantitative formulas that drive trades based on data input. Do this, he says:
Tax every single share of stock that is bought and sold 25 cents per transaction. One quarter. If you buy a share of stock, your brokerage pays a 25c tax. If you sell a share, your brokerage pays a 25c tax. 1 share, 100 million shares. Its 25 cents per share.
Of course the tax will be paid for by those of us who are buying and selling stocks. So what? Here is the reality. If you are a true investor. Someone who wants to own a share of stock in a company you believe in, then its an amount that is not going to impact your investment decision making process. You bought those shares to be a shareholder.
It could bring in more than $100 billion annually.