Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
As with any of the big questions worth asking, there is no easy answer to whether the stock market is rigged. The real answer is both yes and no. On the one hand, the market has rules and regulations, oversight boards like the Securities and Exchange Commission, and is open for all investors to participate in on a potentially equal basis. On the other hand, the way the market works is clearly “unfair,” as Tepper puts it (1). Unfairness is built into the system because the actual point of sale is not something the ordinary investor is privy to—meaning the price of stocks is not a true reflection of investor supply and demand. This inherent unfairness built into the process of the stock market is why maverick developers like Brad Katsuyama has developed the IEX (Tepper 1). Abraham points out other reasons why the stock market methodologies remain unfair, “rigged,” in the sense that Wall Street insiders have access to information that ordinary investors do not. For example, money market managers and other insiders have access to “huge amounts of capital” that create fluctuations in price in what could be considered an unfair advantage—similar to the ways Wal-Mart undercuts small businesses at the bottom end of the supply...
Abraham also reminds investors of the importance of political clout. Politics plays an indirect but important role in market values, particularly in sectors with large lobbying presence.
Ordinary investors are poised to mitigate these unfair disadvantages through technological tools. IEX is one of many possible solutions. Investors could soon have access to an abundance of applications that help them participate in flash trading if they wished. The crypto-currency craze is another consumer-driven reaction to the Wall Street domination of the market. With crypto-currency, ordinary investors are in charge of supply and demand, not money market and hedge fund managers, or bigwig bankers and lobbyists. Investors also need to take some responsibility for surrendering their power through willful ignorance. As Abraham points out, the Internet offers a wealth of information about what is going on in the market each day—even each hour. While these websites cannot substitute for the quality of insider information that bankers and money market managers have access to on Wall Street, at the point of sale, it still does empower more investors. If more investors used the power of information and information technology, bankers would…
Stock market, there are a number of factors that will have an impact on share prices. This is because of perceptions about: future prospects for the company and the effect of new products / services on the earnings per share. In the case of Apple, the stock fell from $205.94 to $192.06. This was in response to the firm announcing the introduction of the I Pad. What makes the situation
Undoubtedly, this being a factor, the trends seen in the price inclines with Lowe's stock reports may be a trailing effect of the growth in product sales during the months prior to the apparent growth trends. Large spikes in these trends, either inclining or declining, are direct responses from this type of seasonal business. When a surge of orders and purchases has occurred, there may be several days or
The following is a chart of what the February 2006 crash looked like, according to Bloomberg.com. Source: Bloomberg.com, 2007 According to Bloomberg, this downward crash had a dramatic effect on the U.S. market as well. When one views this chart, it is no wonder that speculators are divided about the reactions of Saudi Investors. This was a devastating crash for many and it will undoubtedly have a dramatic effect on their decisions
obesity and diabetes increased? The stock market is one of the most powerful entities in the contemporary society and this is largely owed to the fact that it controls the financial aspect of the social order. Stocks and bonds are the most important concepts in the stock market, as companies and institutions buy and sell them depending on their interests. Most individuals who want to make a profitable investment think
profit through investing on Stock Market Generally, all over the world financial markets exemplify a state of intricate and inscrutable situation. These marketplaces are of immense significance in the western nations, where the constituents employ their expertise to invest and generate profit whilst formulating a pool of funds, statistics, derivatives, shares and calculation intricacy. These constituents or elements are those investment maestros who are the whole and sole performers of
oil prices and the stock market. The relationship between oil prices and increases in costs to transportation, heating and production are reviewed, and the role of spiking oil prices on market uncertainty is discussed. Overall, higher oil prices are historically linked to declining stock market prices, and it seems reasonable to suggest that future stock market decreases will come from current increases in oil prices. Stock market performance is strongly