Are equity markets fair to all investors/is the system rigged? (Research Paper Sample)

The Fairness of the Equity Markets
Institutional Affiliation
The Fairness of the Equity Markets
Introduction
Indeed, a better comprehension of the securities markets and the way they are regulated can create tremendous rewards for society. The equities markets are a central part of the global financial system, fulfilling the interests of businesses, investors, and the holistic economy. The equities markets offer chances of investment for both institutions and households. The equities markets also serve as a source of financing for corporates and allow for ways to hedge against downturns in the economy and the risk to cash flow to individual companies. Further, the other assumption is that through strategically determined pricing, these equities markets give more vital information about the potential of businesses and, as such, they contribute to the decision-making processes for the actual economy. In 2008, the Global Financial Crisis made the world more aware of the dangerous contagion that an unchecked financial system can become: Wall Street was in the spotlight for its corruption and moral degradation, the consequences of which the world is still feeling. Perhaps before 2008, such terms as being “overleveraged", "credit crunch", "mortgage-backed securities" among others were esoteric terms that belonged to the masters of the universe in Wall Street but which have become colloquial terms in everyday life. Certain names became infamous, for instance, Bernie Madoff and the Lehman Brothers. Suffice it to say, many would-be investors investing in the equities market for the first time believe that it is not a level playing field. Also, even the veterans of such markets have borne the brunt of the markets being seen to benefit only a few at the expense of the larger demographic. The equities market may not be rigged (and its complexity makes it hard to understand), but it is dangerously skewed against small investors, and with that in mind, one can conclude that the stock market is rigged.