Gamma measures the degree to which a firm’s share pricing is influenced (and perhaps distorted) by computer-driven trading/investing programs
Company-driven activity is distorting your share price – but you’re not helpless, says James MacGregor
Computer-driven trading and investing programs now account for more than three quarters of the daily trading volume on both the NYSE and NASDAQ. To which many companies respond: ‘So what? That means lots more buyers and sellers for our shares, and the market price is still the market price. And even if it was causing a problem, there’s not much we could do about it. Right?’
Well, no, not right at all. All that computer-driven activity can – and does – seriously distort
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James MacGregor
James MacGregor is a co-founder of Abernath MacGregor and has previously been its managing partner and its president. He works closely with clients on corporate and communications strategies that relate to crisis management, investor relations...
Vice chairman, Abernathy MacGregor
