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The Reddit investors demonstrated in the starkest terms that they could manipulate the market.PHOTO: REUTERS
Andrew Ross Sorkin
https://str.sg/JH4a
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The lessons of GameStop: How Wall Street can stop markets being manipulated
By Andrew Ross Sorkin
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There will be academic case studies on the mania around GameStopâs stock. There will be philosophical debates about whether this was a genuine protest against hedge funds and inequality or a pump-and-dump scheme masquerading as a moral crusade. Eventually, we will learn whether this was a transformational moment powered by social media that will shift the investing landscape forever, or a short-term blip that soon fades away.
Whatâs less up for debate is this: The public has a deep distrust of the stockmarket and everything it represents. That lesson has been laid bare by the anger coursing through the Reddit posts and Twitter threads of GameStop traders and throngs cheering them on.
Anyone can manipulate the market. Here's how to fix that theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
Six ways to make trading fairer
As we try to understand what happened in the meme-stock frenzy a populist uprising, a skillfully disguised market manipulation, or both? one thing is clear: The public doesn’t trust the stock market. In his latest column, Andrew offers some potential ways to make investing fairer and regain trust:
A transaction tax, even of 0.1 percent of a trade’s value, could reduce the attractiveness of the high-speed trading that gives sophisticated Wall Street firms a huge advantage.
Force hedge funds to disclose short-selling positions. “If we as a society believe transparency is important to understand who is buying up shares, it would seem logical that we also want to know who is betting against them,” Andrew writes.