Abstract
Abstract Chapter 2 examines the links between noise and institutional trading from the viewpoint of each one’s capacity to morph into the other. While noise and institutional trading are usually regarded as conceptually separate, this chapter shows that there are practical circumstances in which they mutually support and reproduce each other. Based on participant observations and interviews, this chapter shows how financial institutions encourage noise trading as a recruiting ground and how former institutional traders and finance professionals craft second careers for themselves in retail brokerages and advisory firms. The setting is provided mainly by the activities of student trading clubs, which work as recruitment grounds for banks and other financial institutions. The chapter examines the ways in which trading clubs replicate formal structures from financial institutions, and initiate activities meant to pre-figure and facilitate recruitment of their members by these institutions. As such, activities as retail traders are not incidental, but organized. They precede careers as professional traders within banks and financial firms. Overall, the chapter’s argument is that from an institutional point of view, noise and institutional trading are not completely separate and that transitions from one domain into the other regularly take place.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
