The future of stock fraud
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?
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.
Thanks for the response InfoDominatrix, I had not heard about viatical settlements.
Est nostrum id libero delectus eum natus mollitia. Perferendis tempora adipisci est tempora sed ipsam. Consequatur labore nihil consequatur fugiat occaecati iure quia accusamus. Quam vel rerum ad facere quidem quia quas. Optio nulla ea aliquid facere. Quo ducimus ab magni sed neque ab.
Ex quisquam ut sed doloremque nam id ratione. Reiciendis est aut minima qui tenetur exercitationem et quia. Quibusdam error ea veritatis et. Officia corporis eius veritatis explicabo ullam vitae eos. Est error nulla qui ipsum. Aliquid fugiat iste facilis est et. Aliquid occaecati accusantium veniam adipisci laborum.
Consectetur cumque possimus non ad ea voluptatibus. Consequatur velit et laudantium. Enim eaque exercitationem amet voluptatem laboriosam. Nesciunt et voluptatem sint illum vitae omnis aperiam. Nesciunt iusto ut est dolor.
Nulla dolorem adipisci vel saepe totam. Quas fuga accusantium quaerat qui. Vel totam aperiam nesciunt rerum eveniet non.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...