What is a Wall Street buy program?

Question

I've heard various Wall Street reporters use the term "buy programs" to explain market movements such as "the Wall Street buy programs kicked in and moved the markets higher". Are these automatic programs that Wall Streets firms use to buy stocks?

Answer 1

Some brokers and individual investors have software that track trends one or many markets (Stocks, bonds, debentures, etc). These programs don't automatically buy the stocks, but they do kick out reports that show where likely trends are going and which stocks might come out the best in the end.

Typically, the only people that can use these are the really big stock houses because they have the ability to move quickly with a lot of cash to make a purchase. In addition, the big houses have seats directly on the floors of the exchanges and can benefit from thier reduced cost to purchase because of it.

Don't sweat it. Buy companies you know and hold them. That is the way to make your money and keep it. If you don't beleive me, ask Warren Buffet.