It seems like a conflict of interest, and a neglect of fiduciary duties. I understand they can even "Borrow" OUR stocks and buy and sell them. This means they could borrow, sell them, buy them back as the price is lower, and then put them back. They have all our credit info, charge us for the trades and they get to do it free. I think the SEC and the stock market ARE "The Mob".
It's crazy to invest in the stock Market anyway. Most Corporations overpay Management and try to run the companies at 0 profit anyway, so the stock holders usually get screwed.
2006-11-13 04:43:25 · 1 answers · asked by Billy B 2 in Politics & Government ➔ Law & Ethics
The official reason is that they make an 'orderly market'. They must buy and sell to keep the market from sudden and dramatic shifts. So they are forced to buy and sell under certain conditions.
It is also true that the make full use of opportunities to buy and sell when they can make money.
It's an unpleasant trade-off.
I don't agree with them or with this policy but that's what is happening.
2006-11-13 04:47:47 · answer #1 · answered by Zee HatMan 3 · 1⤊ 0⤋