Years up to 1929 and short while afterward, pools of wealthy investors joined up secretly to drive up prices of stocks so they could reap the most money from the market. The reverse could be done so certain stocks could be horde to sell at higher prices later. Rules and regulations came into play when the authorities figured out the game, and that were enough to effectively stop such practices.
Nowadays, stock market seems to be even more volatile even though we still inherit the rules and regulations of the pasts. Everything electronic has drove stock market to lose points sharply as if the game is rigged, therefore not every investor is confident that the market isn’t rigged. Story such as “U.S. Regulators Seek High-Frequency Traders’ Secret Computer Codes” isn’t boosting confidence of many investors, but the truth has to be sought out nonetheless.
Hopefully, the link which points to the story above won’t be a smoke of a fire to come that will destroy the confidence of investors, especially now since the economy isn’t stable at all. If there is a fire though, the truth has to be told so people can avoid being burned by a rigged market. Scary isn’t it?
Basically, Huffingtonpost reports that Financial Industry Regulatory Authority requested secret computer codes and algorithms from high-frequency traders for an investigation that is underway. Securities and Exchange Commission is also on the case. The authorities don’t want investors to be alarmed since nothing suspicious has yet been found, but the investigators want to make sure the market isn’t rigged, I guess.