ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Fix the Stock Market

Updated on November 16, 2016

How to fix the stock market?

This lens is my simple common sense approach to fixing the stock market.

- Oct. 2008

It is very simple...

Just follow the following steps...

  • Eliminate margins. No more borrowing to invest in stocks.
  • Eliminate short selling. No more betting on stocks of a company going down...
  • Eliminate options trading.
  • Regulate Hedge funds as regular Mutual funds.
  • Hold auditors accountable to their statements...When they are caught not doing their job, they will go to jail or pay fine or loose their license.
  • Electronic trading must be limited to a cap amount per day. No more than up/down swing of 3% per day. This will prevent run away swings in the market.
  • Top executives must not be able to buy and sell their own company stocks on the open market.
  • Company 401K plans must not include stocks in their own company.
  • Companies should limit their Executive compensation plan with regard to offers of Stock options. These should be strictly long term incentives based on positive results and not be used to manipulate company balance sheets for short term gains.

    No more golden parachutes.

  • Finally, fees by mutual funds should be made transparent and standardized. No more hidden charges (front loading, back loading...) of fees.

Investing 101

Why should investing be so complicate?

The answer is - it doesn't have to be.

Why do we need experts or financial advisors?

We don't.

Why is investing in the market like a gambling casino or worse? (like a fixed horse race...)

Because some people make lots of money using inside knowledge.

  • Don't trust the experts or advisors - they don't know any more than you do. They just think they know more...
  • The old adage applies - what is too good to be true - usually is...
  • Everyone should has some basic knowledge about investing.

    It is not too hard to learn.

  • Don't take more risk than necessary - at any age...
  • Don't follow the crowd... They are usually wrong.
  • Basic sound principles are the best way to go.

Everyone must play by the same rules.

The integrity of a trading system must be first and foremost. That means everyone, from the CEO down to the traders to the common folks must abide by the same rules. It is like playing BlackJack at a casino. The rules are the rules. Everyone knows what they are. No betting outside of the system.

Insider trading will be punished swiftly...

New Guestbook

    0 of 8192 characters used
    Post Comment

    • jackclee lm profile imageAUTHOR

      Jack Lee 

      3 years ago from Yorktown NY

      breakfastpop - Yes you are correct. If only...

    • breakfastpop profile image

      breakfastpop 

      3 years ago

      Sounds like great advice. ow if only the powers that be would cooperate.

    • jackclee lm profile imageAUTHOR

      Jack Lee 

      3 years ago from Yorktown NY

      Larry, I always wonder who dreamt up these trading schemes such as shorting and derivatives trading... Where is the SEC when you need them?

      Thanks for checking in.

    • Larry Fields profile image

      Larry Fields 

      3 years ago from Northern California

      Hello, Jack. I liked your second point:

      "Eliminate short selling. No more betting on stocks of a company going down..."

      Shortly before 911, there was much-heavier-than-usual short selling of the stocks for the airlines that were directly affected. Short selling is a mechanism by which terrorists and their financiers can profit from killing innocent people.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)