Stock trading
Stock trading is a large and active market, making scams common. Stay alert and contact us promptly if you suspect fraud.
How Does the Stock Market Work?
The stock market is a centralized platform where investors can buy and sell shares of publicly traded companies. Most global markets are well-regulated, requiring the use of licensed brokers to handle transactions between buyers and sellers.
In the United States, two major exchanges dominate the market: the New York Stock Exchange (NYSE) and Nasdaq. These are fully regulated and help ensure secure, legal trading environments. With the rise of online platforms, access to the stock market is easier than ever, and the barriers to entry continue to drop.
However, this accessibility also comes with increased risk. The investment world is not immune to fraud. Investors must stay informed, practice due diligence, and take steps to protect both their data and finances from scams and fraudulent financial products.
Is the Market Rigged?
Many people wonder whether the stock market is truly fair or if it’s controlled behind the scenes. In the United States, the market is regulated by agencies like the SEC (Securities and Exchange Commission) and FINRA (Financial Industry Regulatory Authority). These bodies oversee stock exchanges and monitor brokers to ensure compliance with laws and ethical standards.
However, regulation doesn’t eliminate all fraud and misconduct. Cases like Enron and Valeant Pharmaceuticals show that even major companies can deceive investors through illegal or unethical practices. Fraudsters also promote fake investment opportunities, including Ponzi schemes—with Bernie Madoff being one of the most notorious examples in history.
Even online brokers, which are meant to act in the best interests of their clients, have come under scrutiny. A recent example is Robinhood’s role in the GameStop incident in early 2022, which raised questions about how much power retail investors truly have.
While the stock market carries risks and bad actors do exist, the majority of brokers and exchanges operate under strict legal and ethical standards. It’s important to stay informed, cautious, and skeptical of anything that seems too good to be true.
FAQs
No, the stock market is not a pyramid scheme. It is a regulated financial system where investors buy and sell shares of companies. While some scammers run pyramid or Ponzi schemes, the stock market itself is not part of MLM or similar fraud structures.
Simply visit our website and fill out the contact form. One of our representatives will reach out and guide you through the entire recovery process, step by step.
Yes, certain types of stock manipulation are illegal. While most trading is regulated and follows legal standards, some practices—like front running and naked short selling—are prohibited.
Naked short selling involves selling shares without actually borrowing them. A notable case was GameStop in early 2021, where hedge funds shorted 130% of the available shares, exceeding the total float and sparking public controversy.