The Majority of Individual Investors Feel the Stock Market Is Rigged
March 25, 2021
Between the lockdown and stimulus money, Americans last year had money on their hands but nowhere to go. This, coupled with apps like Robinhood, led many to take a shot at investing. Now, a recent survey found that many of them feel like individual investors can’t get a fair shake in the stock market.
The survey, conducted by Bankrate, found that more than half, 56%, of investors feel the market is rigged against individual investors. That’s more than the 41% of non-investors who feel the same, indicating that personal experience may play a role.
Bankrate noted that part of this is due to expectations. New investors looking to time the market or score big returns may come away feeling disappointed. There is also a sense of resentment that institutional investors and hedge fund managers get earlier access to IPOs and better trade execution.
The survey, which is based on responses from 2,525 American adults, was conducted in late-February, after the run of “meme stocks” like Gamespot, which saw fortunes be made and lost in a matter of days, prompting Robinhood to halt trading at times.