The big debate on Wall Street this week surrounds the world of high-frequency traders, the subject of Michael Lewis' new book, Flash Boys. A story on CBS's 60 Minutes this past Sunday featured an interview with the author in a segment highlighting the speed advantage that high-frequency traders have over regular investors, and how they can bid up the price of each transaction as it happens, and make a profit as a result. Since the story broke, however, two camps have formed: one in support of the author's case, and the other suggesting that high-frequency trading has, in fact, stabilized the market with increased liquidity and has resulted in a net positive for investors by dramatically narrowing bid-ask spreads.
In this segment from Friday's Investor Beat, host Chris Hill and Motley Fool analyst James Early take a look at both sides of the argument, with Charles Schwab (NYSE: SCHW ) on one side, and Jack Bogle on the other.
Boost your 2014 returns with The Motley Fool's top stock
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report, "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.