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Sunday, October 17, 2010

Is The Market Rigged?

Dylan points out that the stock market was put in place for long term capital investment and to provide capital to companies in the U.S. with funds to create new products/innovations. High speed trading is not fulfilling that requirement, it is stealing from 401k's and potential capital investment as investors turn away from stock investing due to this unfair advantage and distortion in the markets.  Over time this steals from the potential for return in the stock market from individual investors whom do not have these capabilities.  It forces us to go back to a time where the only choice we have is to invest in mutual funds and ETF's to take advantage of high frequency trading (and incur the management costs).
As pointed out in the video is that 90% of the high frequency trading orders are canceled which causes the price to be artificially inflated or deflated.  If you are outraged by high frequency trading you can contact the SEC at the following:

You can email the SEC via this link https://tts.sec.gov/oiea/QuestionsAndComments.html
You can find your regional office from this link http://www.sec.gov/contact/addresses.htm

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