In an interview with “Axios on HBO,” New York Stock Exchange president Stacey Cunningham rejected comparisons between stock market investing and gambling.
Between the lines: Senator Elizabeth Warren recently said that “investors big and small are treating the stock market like a casino,” in response to last month’s situation with GameStop, Reddit and Robinhood. Cunningham says Warren is wrong.
How Cunningham replied:
“The markets are not a casino. They are highly regulated and closely monitored … We run a market that gives investors opportunities to come in, invest in the companies they believe in, that they believe will grow. , and then share in that wealth creation … That’s what made this country so great is that a dreamer, an entrepreneur with an idea that can start and grow a business by letting others invest and share in their success. “
Cunningham also says NYSE officials have not been asked to testify at upcoming House or Senate hearings about the volatility of last month’s headlines, although GameStop, AMC and several other “meme stocks” are traded on the NYSE.
About the issues: Cunningham strongly opposes a financial transaction tax enacted as a way to even improve the investor field, even threatening to pull the NYSE out of New York if such a tax were passed at the state level.
- She believes, however, that regulators need to take a “new look” at greater transparency about hedge fund short positions.