Why BlackRock is Building a New Stock Market... In Texas

-----

My Other Channel: @HowHistoryWorks

Edited By: Svibe Multimedia Studio

Music Courtesy of: Epidemic Sound

Select Footage Courtesy of: Getty Images

All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.

#business #finance #texas

-----

Last week Blackrock (the world's largest asset manager), and Citadel Securities (the world's largest hedge fund) teamed up to make a major announcement that could reshape global financial markets. They were going to team up to create a new wall street… in Texas.

These two companies have the financial muscle to make a “Texas Stock Exchange” viable, but the question is… why? The startup exchange that will be located in Dallas is already taking shots to challenge the dominance of the New York Stock Exchange and the NASDAQ which are both located in New York City and are by far the largest exchanges in America, and also the largest exchanges in the world. Both of these incumbents are private businesses that make money by providing a place where public stocks and other financial instruments can be traded securely.

They make their money by charging companies that want to list on their exchange a one time IPO fee and an ongoing annual fee. The New York Stock Exchange is really not much different to a farmers market where businesses will pay the market organizer for the right to sell their stuff in a place with lots of customers. The only difference is that instead of beets, and artisanal honey, they are selling shares in their company. If the New York Stock Exchange is like a farmers market then the NASDAQ is like ebay, it’s still a marketplace but it’s all done online.

The NYSE is owned by a company called Intercontinental Exchange whos shares you can buy on the New York Stock Exchange so apart from a lot of regulatory paperwork there is nothing too special about these companies. As long as a business gets approval from the Securities and Exchange Commission there is nothing to stop them from establishing their own stock exchange wherever they want.

The reason they both happen to be located in New York City has more to do with legacy than any pragmatic benefits of operating in a state that is actually not particularly business friendly.

The New York Stock Exchange was formed when New York was still a trading center and the NASDAQ set up there in 1971 because at the time the city was the undisputed business capital of America and back then physical proximity was much more important than it is today even though it has always been an electronic exchange.

So why is this new challenger bucking the trend and setting up in Texas?

Well… why not Texas?

So it’s time to learn How Money Works to find out why some of the most powerful financial institutions in the world want to build a new Wall Street in Texas.

[Dantursi]

In the last 3 days, when stock prices plunged Retail investors sold $1 Billion. Institutional investors bought +$14 Billion. This is Market manipulation at its finest.

[alexsteven.m]

I feel investors need to be focus on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

[BrewerVera]

Biggest lesson i learnt in 2024 in the stock market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.

[danieltaylor--]

Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as the EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE

[jimk]

I love how people consistently run away from their problems only to create the exact scenarios that perpetuate the problems they run away from. Good luck, Texas. You’re gonna need it.

[leondonald]

Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in 2024 with the markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[spartan]

Holy crap Black rock and Shitadel working together is like Alien and Predator working together to f*ck us all

[shukriAmad]

I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice

[LoughBellis]

I believe investors should focus on under-the-radar stocks, especially given the present rollercoaster nature of the stock market. 35% of my $270, 000 portfolio consists of collapsing stocks that were previously respected, and I don't know where to go from here.

[DavidCovington-stid]

Treasury yields and other safe cash-like investments are raising high returns, yet most investors believe this is a good time to buy stocks than gold despite crash. I'd love to spread across $400k into profit yielding dividend equities and end the year well, but unsure of which to get acquire.

[XGODLIVE]

blackrock secrets is a forbidden book that everyone needs to find. It goes deep and it changed my life.

[andreww]

‘Anti-woke’ and BlackRock should never be in the same sentence

[myhandlewastakenandIgaveup]

The most important words in this video "assuming the major financial institutions bankrolling it don't turn it into their own playground".

Which is not a small likelyhood.

[JJ-siqh]

Ahh, Blackrock. The company we should definitely be trusting

[tonysilke]

My expectation for 2024 is that markets starts to broaden out more, ” what if the interest rates go up? i have a ton of questions....can I safely invest $220k? What should I do differently?

[eliseduffyfxx]

I recently sold a house in Portland, and I'm considering investing the proceeds in stocks. I know it's a wonderful time to buy, but is this the right moment? When will I fully recover? I'm honestly just perplexed at this point as to how other folks in the same market are making over $450, 000 in gains in a matter of months.

[GotA-doob]

I'm not surprised at all that Blackrock is moving in. I work for a civil Engineering firm, and the amount of land and utility infrastructure development we have been involved in for housing alone has been mind boggling. The town and surrounding area where I grew up has been rural for my entire 26 years of life, but within the last 3-4 years I would say 60% of the previously thousands of acres of unused/undeveloped land has been clear cut to make way for suburban housing. It's all being bought up by corporations and land developers I've never heard of before. Most of them are investments by single owner millionaires who are looking to make as much money as possible as cheaply as possible building tight lot developments. The land value in Texas is going through the roof, Not helped by the fact that there's less and less of it to go around thanks to Blackrock buying it all up.
I'm not kidding when I say this has basically been overnight.
People around here are getting knocks on their door every couple months from developers trying to buy their land. It's just a crapshow. No one who lives here can even afford any of the houses that are being built or even the land itself. These small cities and communities are historically majority population below poverty line. Yet the prices have skyrocketed. The house I grew up in has had an empty, undeveloped lot next to it my entire life. It's 2 acres, barely worth 40k, and that's being generous. It was purchased last year for a staggering 110k! An empty lot! No sanitary, no water, no electricity, barely 2 acres. The people moving here think they're getting a deal too. Thousands from Cali. Feels like every other day I'm meeting someone who moved here from Cali.

[Maverick]

Investing in the stock market has HISTORICALLY provided higher returns than other forms of investment. According to Morningstar, the average annual return for the S&P 500 index, which measures the performance of 500 large-cap stocks, was approximately 10% from 1926 to 2020.

[hushbash]

I've kept much of my savings in cash for safety, but I'm unsure if it's right for retirement. Contemplating investing $100K in stocks, as I've heard investors can profit in tough times. Unsure about my next move.

[Beatricegove]

I've owned NVDA for over 8 years. It's been up and down, but I believe in Jensen Huang and will stick with NVDA until Jensen says otherwise. I know that sounds crazy, but when the financial statements/Jensen, (same to me) tell me to sell, I will. I'm sure I won't sell at the top, but that's OK.