A real Robin Hood on Wall Street: democratizing stock markets without exploitation
WASHINGTON DC – Dennis M. Kelleher, President and CEO, issued the following statement in conjunction with the publication of an article titled “Democratizing Stock Markets With and Without Exploitation: Robinhood, Gamestop, Hedge Funds, Gamification, High- Frequency Trading, And More,” written by Better Markets Staff of the Western New England Law Review:
“Wall Street has been too exclusive, expensive, opaque and convoluted for too long. The closed nature of Wall Street has allowed start-ups to pitch to Main Street investors, claiming they will “democratize” our financial system, with easy access to stock market riches and cheaper or even free financial products and services.These claims are often just a cover for manipulation and exploitation, and in the case of Robinhood, use clever marketing , predatory app features, hip/cool logos and a legendary name to disguise owners’ get-rich-quick schemes.
“Stock markets and finance as a whole can be truly ‘democratized’ (i.e. lower costs, easier access, more enjoyable experience, etc.) without exploitation, manipulation and predatory profit at the expense retail investors. What Main Street investors need is a modern-day Robin Hood that does not take from the rich to give to the poor, but provides Main Street investors with real opportunities to trade, invest and to create wealth on the stock markets. This democratization can – and must – take place without exploitation.
“True democratization means it’s easier for main street Americans to make money in the stock market. This may be possible for retail investors, but they are unlikely to engage in the frequent trading strategy of Robinhood and other platforms that use predatory practices.
Find the full article here or the fact sheet here or on the button below.
Better Markets is a nonprofit, nonpartisan, independent organization founded in the aftermath of the 2008 financial crisis to promote the public interest in financial markets, support financial reform on Wall Street, and make our financial system work for all Americans. Again. Better Markets works with allies, including many finance stakeholders, to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes jobs, jobs, and growth. savings, pensions and more for Americans. To learn more, visit www.bettermarkets.org.