The future of stock fraud

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As emerging markets become more developed, governments more transparent and government agencies more effective, stock fraud will become less rampant. Less Brazilian or Russian mining company, less stock fraud in Asian markets.

Will short selling fraudulent companies potentially become a less profitable strategy in the future?

Comments (3)

 
Most Helpful
Oct 24, 2018 - 2:47pm

Stock fraud has a myriad of facets.

While some types of securities fraud may become more difficult to commit with new technologies and new regulations... there will always be somebody abusing whatever systems that currently exist, just as there will always be a novice, a neophyte, a sucker or someone just too fucking greedy that will get pulled into or create some variation of a stock scam, be it shady penny stocks, viatical settlements [this was huge in the 80s and 90s with people dying from AIDS and taking the cash value of their life insurance to pay for meds... I suspect this could return again what with the aging populations in the US and elsewhere], Ponzi schemes, pump n' dump, boiler rooms, prime bank programs and so on.

Just like the mindset that some people have had about counterfeit money, that if we were to go cashless, this would end counterfeit monies being made. Ok, so maybe now there's less counterfeit money BUT now there's more identity theft because the person's identity in a sense has become part of the currency used to make purchases in this day and age.

As long as there are crooked unethical people doing business, there will always be frauds and scams. The frauds and scams will simply change with the times, they won't be eliminated, alas.

 
Nov 3, 2018 - 7:48pm
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