I am reading Flash Boys by Michael Lewis, and I am very confused by one passage.
On page 52 in my copy, they mentioned that their investment let them escape taxes. I am utterly confused how that works and what they really mean here:
"[T]hey bought 10 million shares of Citigroup, then trading at roughly $4 per share, and saved $29,000 — or less than a tenth of 1 per- cent of the total price. “That was the tax,” said Rob Park. It sounded small until you realized that the average daily volume in the U.S. stock market was $225 billion. The same tax rate applied to that sum came to more than $160 million a day."
You can find the the full page here.
What is going on?