Okay, when Bob head to Vegas and gamble my money without my consent he has committed fraud. I don’t remember much about bucket shops but I believe there was fraud involved there as well. That is different then speculation.
Suppose I hire Bob to speculate with my money and he buys and sells stocks every hour then I believe what he is doing is legal.
My understanding is they put buckets out in front of barber shops for example, and you bet on whether market went up or down, or sugar up or down, or particular stock up or down. I understand, the CMA had to specifically pre-empt state laws against bucket shops so that derivatives could be used.
I think what it boils down to is what is the function of the markets? Another example. say A group of 20 people own the Dallas Cowboys. Every week, 2 or 3 of them sell out and 2 or 3 different ones buy in.
Is that good for keeping control over management or the coaches? I would suggest you start to get a disconnect thing going on and the effect is, 2 or 3 stable owners end up running whole shebang. Is that good for the organization or will the 2or 3 kinda run t for themselves.
If they do, the 2 or 3 might like the price to fall so they can buy up shares cheaper...
parsy