Is The Stock Market Rigged?

by Stephan Abraham

During the financial crisis that started in 2008 we constantly heard and read about corruption and scandal on Wall Street. We became familiar with terms such as overleveraged, mortgage backed securities, recession and liquidity crisis. There was without a doubt a strong dislike toward Wall Street during those days from Main Street. Many would-be first time investors in the stock market do not believe it is a fair playing field. Likewise, many market veterans have been burned once too many by the greedy few at the expense of the general population.

So investors rightfully wonder whether the stock market is rigged. Technically, the answer is of course, no, the stock market is not rigged but there are some real disadvantages that you will need to overcome to be a successful small investors.

Laws and governing bodies such as Securities and Exchange Commission exist to "level the playing field" for everyday investors. However, there are undeniable advantages money managers on Wall Street have over us: timely access to privileged information, huge amounts of capital, political influence and greater experience. Although intimidating, these apparent disadvantages should not dissuade you from reaching your investment goals. By carefully monitoring your investments and taking risk mitigation steps such as stop losses, as well as keeping informed of general investment themes or trends, you can overcome these imbalances and still be successful in your investing endeavors.

http://www.investopedia.com/articles/stocks/10/stock-market-rigged.asp