More than 50 percent of U.S. investors believe the stock market is rigged, according to a Bankrate survey. When you look at the wild price swings of a stock like ViacomCBS, exacerbated by massive trades that backfired on a family hedge fund and shook the investment banking world, the obvious question arises:
Why isn’t it 100 percent?
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2 comments:
The wide price moves in Viacom prove that many investors are really gambling on stocks, not investing in them. I didn't see "rigging" in the WSJ article you linked to.
Compare to GameStop, where it looked like trading was suspended to protect some big hedge funds.
In the short term, I do agree that there is some questionable game playing. In the long term, I don't believe the market is or can be rigged.
Because massive ViacomCBS purchases were shielded from regulatory view by the use of swaps, they might involve "rigging." But yes, for long-term investors, short-term sound and fury signifies little.
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