Not that I agree with it, but one of the talking heads on Fox Business was blabbering on about how retails investors should not be allowed to move the market because they're are unlicensed and don't understand the implications of their actions, hah.
I think there's something to that though. Whats to stop big firms from posing as many retail investors if there's no regulation against that class of investor manipulating the market?
I don't have the answer but its something to think about.
That makes no sense though. It's like arguing what if someone uses a car to commit a murder while pretending to drive it normally.
The answer is the same in both cases, law enforcement needs to investigate and catch it. If they can't, too bad, there are a lot of undetected crimes in the world, doesn't mean that we have to prohibit normal activities to stop them at any cost.
I think its more like suggesting private drivers might need a driver license as well even if most drivers plan to drive legally.
Are you suggesting the licensing and regulation does nothing? Do you think the big firms should be treated the same way as retail investors because crimes will be caught either way?
I'm in no way a proponent of big firms but I think its important to think about what kind of under regulated trades are happening.
I'm not sure about that. Higher end trading platforms have automated buy strategies that spread the bids across time so as not to cause the market to spike.
