The Problem With Jon Stewart is now streaming on Apple TV+
https://theproblem.link/StocksEpisode

Listen to the full podcast episode here:
https://theproblem.link/RobJackson

Former SEC commissioner Rob Jackson joins Jon to unpack the Problem(s) with the Stock Market, including why your average investor is basically trading in the dark, and the blatant lobbying that keeps Wall Street from ever facing consequences when they cheat (which they do A LOT).

Some terms in this episode you may not know but should know:

Arbitrage: Exploiting a price difference of the same asset. It’s like buying avocados at the supermarket for $1 each and selling them at the hipster farmer’s market for double.

Citadel, which is an investment company. Citadel is a market maker – meaning they help investors buy and sell securities, using the pool of shares they own. They’re basically a middle man, with access to highly important information.

Dark pools are private exchanges for trading securities that are not accessible by the investing public.

Options trading is buying and selling of options, which are essentially contracts that give you the right to buy or sell a stock at a certain price by a certain date. It’s basically betting on a stock price going up or down. So if you purchase an option, instead of buying a stock, it means that you are buying the option to buy a stock if it hits a certain price, and this can lead to issues because if your bet fails, you’ve lost all that you’ve invested. Whereas, if you bought actual stocks, regardless of the price, you still own that asset.

Payment for Order Flow is when brokerages such as Robinhood route the buy and sell orders of retail investors to big market makers such as Citadel and Virtu instead of sending it directly to the stock market. This deal helps brokerages make hundreds of millions of dollars every year

Retail investors are individual, non-professional investors who are buying assets with their own money.

Securities: any tradable financial asset - stock share (equities), bonds, investment funds, pensions, etc.

The Securities and Exchange Commission – or SEC – oversees securities exchanges, brokers, investment advisors, and mutual funds, to create fair dealings, the disclosure of important market information, and to prevent fraud

Bildungsroman: Just kidding, but do you remember that from English class? You need to know it. Please google it.

For more words and definitions: https://theproblem.link/glossary

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