- Prison Planet.com - http://www.prisonplanet.com -
Insider-Trading Probe Reinforces Belief Market is Rigged
Posted By admin On November 26, 2010 @ 5:06 am In Money Watch | Comments Disabled
Nov 26, 2010
The insider-trading dragnet that has rocked Wall Street this week appears likely to reinforce the feeling that the house always wins.
For average investors, a lack of trust in the markets is understandable, especially considering the latest probe comes on the heels of analyst scandals in the ‘80s and ‘90s, the scary financial crisis, the emergence of countless Ponzi schemes and the May 6 “Flash Crash.”
Pervasive investor mistrust is deeply troubling and here’s why: If that sentiment becomes cemented in the psyche of the average investor, it could drive them further away from the stock market and create another headwind for a marketplace already starving for greater participation from Main Street.
“While the rule isn’t that everyone has the same information, the rules do say it’s not a rigged deck,” said Tom Gorman, a former staff member at the Securities and Exchange Commission’s Enforcement Division. “How many times do you want to hear the deck is rigged before you decide you don’t want to play?”
The U.S. stepped up an investigation this week into insider trading that may end up being the biggest ever both in scope and magnitude. Insider trading occurs when someone buys or sells a stock or other security based on nonpublic, material information. If timed correctly, the trades can result in huge profits.
Article printed from Prison Planet.com: http://www.prisonplanet.com
URL to article: http://www.prisonplanet.com/insider-trading-probe-reinforces-belief-market-is-rigged.html
URLs in this post:
 Full article here: http://www.foxbusiness.com/markets/2010/11/24/insider-trading-probe-erodes-investor-trust/
 Having A Supply Of Healthy Foods That Last Just Makes Sense (AD): http://www.efoodsdirect.com//index.html?aid=14&adid=43
 Image: http://www.homegain.com/homevalues
 SEC: We Can Prosecute Congressmen For Insider Trading: http://www.prisonplanet.com/sec-we-can-prosecute-congressmen-for-insider-trading.html
 Goldman Sachs facing a new insider trading probe: http://www.prisonplanet.com/goldman-sachs-facing-a-new-insider-trading-probe.html
 Largest-ever insider trading probe targets Goldman Sachs: http://www.prisonplanet.com/largest-ever-insider-trading-probe-targets-goldman-sachs.html
 Insider Trading Is Legal For Members Of Congress – And They Refuse To Pass A Law That Would Change That: http://www.prisonplanet.com/insider-trading-is-legal-for-members-of-congress-%e2%80%93-and-they-refuse-to-pass-a-law-that-would-change-that.html
 Soros Loses French Insider-Trading Appeal: http://www.prisonplanet.com/soros-loses-french-insider-trading-appeal.html
Copyright © 2013 PrisonPlanet.com. All rights reserved.