Michael Lewis' new book Flash Boys comes out today. It's all about the confusing world of high-frequency, algorithmic trading.
He was on 60 Minutes last night talking about the subject and promoting his book.
In this short segment, he argues that the stock market is rigged.
The first 45 seconds are the key part, wherein he explains the mechanism by which high-frequency traders get ahead of retail orders so as to inflate the price you have to pay for a stock.
The basic mechanism is this: You place an order for a stock, say Microsoft. That order goes to something called the "BATS exchange" at which point high-frequency traders pick up on your order, and then race to the exchange with an order for Microsoft faster than you can get there. They buy the Microsoft and bring it back to you at an inflated price.
NOW WATCH: The Impossible Choice That Had Elon Musk On The Verge Of A Nervous Breakdown
SEE ALSO: Michael Lewis' new book starts out with the perfect quote from The Wire
SEE ALSO: Here's How Elon Musk Can Tell If Job Applicants Are Lying About Their Experience