YAHOO – February 25, 2018: After much chaos with the stock market a few weeks ago and the plunge with Bitcoin, many began to wonder if hidden hands were at play bringing down stock prices to make investment more attractive. And in an article by Yahoo Finance, the question was asked if the stock market was corrupt, and the answer was: No! The stock market isn’t corrupt. But that it can be irrational, confounding, manic and illusory. And it’s not generally corrupt, at least in terms of traders regularly breaking the law and getting away with it.
Several Yahoo Finance readers asked the website’s staffers about the market’s integrity, on account of recent swings up and down that seem to have no obvious outward cause. Markets have been adjusting to new expectations regarding inflation, which explains much of the upswing in volatility we’ve seen during the last month. Some traders who had invested in exotic securities linked to volatility had to unload their positions, leading to several big selloffs that seemed to come out of nowhere. But this type of activity isn’t corrupt, it’s just arcane, and hard for ordinary investors to understand.
Comment by one of Yahoo Finance staffers, Sam Ro: “In the short-run it’s possible for big players to influence the price of a stock. A big purchase, or an upgrade, or a Barron’s cover… some people will illegally get in front of these.