Stock Market Corruption - Just How Common Is It?Your author has recently finished reading "Binge Trading" by Seth Freedman. Freedman was employed in The City - the London financial centre - for six years, and after a spell abroad had returned to write about his experiences and interview others in the markets. His experience in the stock market and as a broker and trader enable him to write with knowledge, but to also have access to people that he may otherwise not have had. He writes at some length about what might be termed corruption or insider trading within the stock market. Much of it is what might be termed 'victimless' but would still be classed as illegal.
Needless to say, he goes on - but you ought to read the book for that! The point, however, is that there does appear to be an undercurrent of corruption in most - if not all - major stock exchanges. This is simply the lure of fast and easy money. Money that can come from high-level skills and knowledge access - legal or illegal.
The regulators of major markets do not seem to have a great (or even simply bad) record in tracking down such offences and an even worse record in punishing them. Stock market corruption of this nature is illegal. But it does raise some interesting questions. Just how clean do we need markets to be? How much are we willing to do to enforce these rules? And why does there seem to be so little interest in pursuing these people? We at StockExchangeSecrets do not pretend to know the answers to the thorny subjects of the markets, but we can at least identify some of the issues. To read more about the subjects and secrets of the stock exchange, please follow these links:
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